Factories in Philadelphia area grow more slowly

WASHINGTON (AP) — Factories in the Philadelphia region expanded at a weaker pace in October as shipments and hiring slowed.

The Federal Reserve Bank of Philadelphia says its index of regional factory activity slipped to 20.7 from 22.5 in September. Any reading above zero indicates growth. It is the second drop in a row after the index reached a three-year high in August.

New orders rose, however, suggesting growth could pick up in coming months.

The index follows a separate Fed report that showed factory output nationwide grew in September. Steady manufacturing output could provide an anchor for the U.S. economy as financial markets have plunged over the past week because of worries about slower global growth.

The Philadelphia Fed's survey covers manufacturing in Pennsylvania, New Jersey and Delaware.