Philadelphia Factory Index Contracts in December

December 21, 2006 12:10 PM, EST

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anufacturing levels in the Philadelphia area contracted in December, the Federal Reserve Bank of Philadelphia said Thursday.

The area’s economic index fell to a minus 4.3 reading, the weakest since April 2003, from 5.1 in November, Bloomberg reported.

Figures less than zero mean that most factories reported weakening business. The factory sector is one of trucking’s largest and most important customers.

The downturn was greater than economists’ expectations, Bloomberg reported.

The Philadelphia Fed surveys about 100 manufacturers for the index in eastern Pennsylvania, Delaware, and southern New Jersey.