Manufacturing weakness continues - survey
Philadelphia Fed's index, although slightly improved, is negative for the ninth straight month.
NEW YORK (CNNMoney.com) -- Manufacturing conditions in the mid-Atlantic region were negative for the ninth straight month, although there was some improvement in August, according to a report issued Thursday.
The index of the Federal Reserve Bank of Philadelphia's Business Outlook Survey improved to minus 12.7 from minus 16.3. The consensus of economists surveyed by Briefing.com was for a reading of minus 13.4.
The numbers are based on a break even mark of zero. A positive number reflects expansion while a negative reading indicates that manufacturing activity is contracting.
"Manufacturing is still pretty weak, been that way for sometime," Robert Brusca, chief economist at Fact and Opinion Economics, said. "Still pretty bad numbers."
The poll indicated that two-thirds of manufacturing firms blame cost pressures as a major cause for the overall weakness, but they believe growth will return in the next six months.
Future indicators of new orders and shipments increased, and more firms expected to add employees than expected to cut staff, according to the survey.
As for more current readings on the economy, new orders were weaker in August. The employment index, which is based on the number of firms hiring and those cutting back their workforce, among other factors, was still slightly negative at minus 1.1. But this reading also improved from the previous report.
Sending goods overseas has become a stronger percentage of sales among the firms surveyed, with 51% of those polled saying exports have increased.
The Business Outlook Survey measures manufacturing trends in eastern Pennsylvania, southern New Jersey and Delaware.
However, Brusca pointed out that the Philadelphia region has had lower manufacturing readings than other areas of the country for some time. So it is difficult to say if this report is indicative of a broader upturn in manufacturing throughout the country. 
