(Kitco News) - The manufacturing sector appears to be sending mixed messages on the health of the U.S. economy as the Philadelphia Federal Reserve reported a sharp decline in its regional survey.
Thursday, the regional central bank said its manufacturing business outlook dropped to -24.3 in February, down from January's reading of -8.9. The data significantly missed expectations as economists were looking for some improvement to -7.6.
"Responses to the February Manufacturing Business Outlook Survey suggest continued overall declines in the region's manufacturing sector this month," the report said.
The gold market is not seeing much reaction to the latest manufacturing data as spot prices continue to tread water below $1.850 an ounce. Spot gold prices on Kitco.com last traded at $1,834.80 an ounce, roughly unchanged on the day.
The Philly Fed survey sharply contrasts Wednesday's report from the New York Federal Reserve, which saw an improvement in its regional manufacturing sector even as it remains in contraction territory. The New York Fed's Empire State survey rose to -5.8 in February, up from January's reading of -32.9. The data beat expectations.
The report noted broad-based weaknesses within the manufacturing sector. Looking at the components of the data, the New Orders Index dropped to -13.6, down from the previous reading of 10.9. At the same time, the Shipments Index dropped to 8.7. down from the January level of 11.1.
The regional labor market weakened in February, with the Number of Employees Index falling to 5.1, down from the previous level of 10.9.
The report also noted that inflation remains a persistent concern, with the Prices Paid Index rising to 26.5, up from January's reading of 24.5.
