Philly Fed manufacturing index drops to -12.8 in October, signaling contraction despite some positive signs.

The Philadelphia Fed's manufacturing index plunged to -12.8 in October, signaling contraction and far below expectations, driven by a sharp drop in shipments and increased reports of declining activity. Despite a positive employment index and rising new orders, the drop marks the lowest reading since April. Meanwhile, the future activity index hit a five-month high, reflecting optimism. The New York Fed reported a strong rebound in manufacturing, with its index rising to 10.7. A delayed government shutdown has limited economic data, contributing to market uncertainty.