By Joshua Kirby

Manufacturing activity in the Philadelphia area fell for a fifth straight month in January, prolonging the gloomy atmosphere in the region's industry.

The Federal Reserve Bank of Philadelphia's index for current general activity was minus 10.6, the bank said Thursday, declining from a downwardly revised minus 12.8 in December. The reading came in lower than the minus 7.0 expected by economists, according to a poll by The Wall Street Journal.

The Philadelphia Fed survey polls manufacturing firms in the Third Federal Reserve District, which covers eastern Pennsylvania, southern New Jersey and Delaware.

The reading is the 18th negative reading in the last 20 months, the Philadelphia Fed said, and firms have little expectation of an uptick in conditions in the coming months. The index for general future activity fell to minus 4.0 in January from 12.6 a month earlier, with more than a quarter of respondents expecting activity to keep sliding over the next six months.

In January, some 26% of firms reported falling activity, compared with 16% reporting an increase. New orders and current shipments improved from a month earlier but remained negative, while employment was largely stable on month.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

January 18, 2024 09:06 ET (14:06 GMT)