Manufacturing in Philadelphia region shrinks

Manufacturing in Philadelphia declined for a third month in a row, as the outlook for new orders declined and the unemployment rate jumped. Philadelphia's general economic index dropped to minus 12.9 in July compared to a 16.6 in a previous month. The deterioration can be explained by the external factors, as worsening Eurozone's debt crisis, slowdown in China's and Brazil's economies, as well as by internal factors, such as a drought in the U.S. Moreover, fundamentals like sales of already existing homes, claims for jobless benefits also worsened.