U.S. Federal Reserve Bank of Philadelphia on Thursday reported continuing expansion of regional manufacturing activity in October.

According to the October Manufacturing Business Outlook Survey, the broad indicators remained positive, although their movements were mixed this month. Meanwhile, movements in the indexes for current shipments and new orders were mixed. The current new orders index increased 1 point, while the shipments index decreased 8 points.

Both the unfilled orders and delivery times indexes remained positive this month, suggesting higher unfilled orders and slower delivery times.

The firms reported an expansion of manufacturing employment this month, and the current employment index increased 17 points to 32.9. The average workweek index remained positive but edged down 2 points.

The firms continued to report overall increases in the prices paid for inputs, but the prices paid index fell 16 points to 16.8. The current prices received index, reflecting the manufacturers' own prices, decreased 4 points to a reading of 16.4.

The diffusion index for future general activity increased 13 points to 33.8, after decreasing 12 points in September. Over 43 percent of the firms expect increases in activity over the next six months, while 9 percent expect declines.

The future new orders index increased 5 points, and the future shipments index increased 2 points. The future employment index fell 8 points this month, but the firms remain overall optimistic about future hiring.

Moreover, the firms were more optimistic about future capital spending this month. The future capital spending index increased 11 points.

The Manufacturing Business Outlook Survey is a monthly survey of manufacturers in the Third Federal Reserve District covering eastern Pennsylvania, southern New Jersey, and Delaware.

Participants indicate the direction of change in overall business activity and in the various measures of activity at their plants.

Federal Reserve Bank of Philadelphia is one of the 12 regional Federal Reserve Banks that, together with the Board of Governors based in Washington, D.C., make up the Federal Reserve System. Enditem