The Philadelphia Federal Reserve’s Manufacturing Activity Index slipped for a third straight month to a reading of minus 3.3, its first negative reading since May 2020 in the early months of the coronavirus pandemic. This is down from the positive reading of 2.6 in May.
The median expectation of economists polled by Reuters was for a reading of 5.5.
The bank’s new orders index contracted -12.4 in June, from 22.1 the previous month. The outlook for the next six months – 6.8 negative – was the weakest since February 2008.
A bright spot was the moderation in inflation, with the country price index falling from 78.9 to 64.5 in June, its lowest level since February 2021. A reading of factory employment is also modestly improved.