Philly Fed manufacturing index dropped to -5.9% in December, falling from previous month's 1.9% and well below consensus expectations.
New orders contracted, while shipments climbed over neutral over the month. Labor market side of the survey was solid, with the employment index and average work week rising in December.
"Negative readings from delivery times (-6.1, previous: 0.5) and unfilled orders (-17.7, previous: 2.4) confirm our overall view that manufacturing activity has yet to find a bottom", says Barclays in a research note.
ISM-adjusted data of the index was steady at 48.1, marking 3rd straight month of overall contraction in regional manufacturing activity.
