New York manufacturing activity saw a considerably slower contraction in June, as revealed in a report by the Federal Reserve Bank of New York on Monday.
The New York Fed's general business conditions index improved to -6.0 in June from -15.6 in May, although a negative value still signifies contraction. Economists had anticipated a rise to -9.0.
The larger-than-expected increase in the headline index was partly due to a markedly slower decline in new orders. The new orders index rose to -1.0 in June from -16.5 in May.
Additionally, the report highlighted a positive shift in shipments, with the shipments index moving to 3.3 in June from -1.2 in May.
Conversely, the number of employees index dropped to -8.7 in June from -6.4 in May, indicating an accelerated rate of contraction. The prices paid index also decreased to 24.5 in June from 28.3 in May, while the prices received index fell to 7.1 from 14.1.
Despite ongoing contraction in current activity, the New York Fed reported increased optimism regarding the six-month outlook, reaching its highest point in over two years.
The index for future business conditions surged to 30.1 in June from 14.5 in May, reaching its highest level since March 2022’s 36.6.
Looking ahead, the Philadelphia Federal Reserve will release its report on regional manufacturing activity in June this Thursday, with the Philly Fed Index expected to remain stable at 4.5.
