US manufacturing conditions improve less than expected

The US Federal Reserve Bank of Philadelphia said manufacturing activity grew by less than expected in July

The survey index fell to 9.3 from its two-year high of 19.8 seen the previous month. Analysts had predicted to see an index reading of 15.0.

Earlier today, the Fed announced that industrial production remained unchanged over the month, falling short of analyst expectations of 0.3 per cent growth. Manufacturing production fell by 0.1 per cent - the first monthly drop since April 2013.

But speaking before the results, senior US economist at Capital Economics Paul Dales said the news would do little to dent the improving outlook, particularly when previous survey evidence has been largely good.