(fxcue news) - The Federal Reserve Bank of Philadelphia released a report on Thursday showing a steep drop by its reading on regional manufacturing activity in the month of April. The Philly Fed said its diffusion index for current general activity plummeted to a negative 26.4 in April from a positive 12.5 in March, with a negative reading indicating contraction. Economists had expected the index to slump to a positive 2.0. With the much steeper than expected drop, the diffusion index for current general activity plunged to its lowest level since April 2023. The nosedive by the headline index partly reflected a substantial downturn by new orders, as the new orders index dove to a negative 34.2 in April from a positive 8.7 in March. The shipments index also tumbled to a negative 9.1 in April from a positive 2.0 in March. The report said the number of employees index also plunged to 0.2 in April from 19.7 in March, with firms reporting mostly steady employment overall. Looking ahead, the Philly Fed said future activity indicators continue to suggest subdued expectations for growth over the next six months, although the diffusion index for future general activity inched up to 6.9 in April from 5.6 in March. The report also said the prices paid index rose to 51.0 in April from 48.3 in March, reaching its highest level since July 2022, while the prices received index inched up to 30.7 in April from 29.8 in March. A separate report released by the Federal Reserve Bank of New York on Tuesday showed New York manufacturing activity has declined modestly in the month of April. The New York Fed said its general business conditions index jumped to a negative 8.1 in April after plunging to a negative 20.0 in March, although a negative reading still indicates contraction. Economists had expected the index to rise to a negative 14.5.