FX.co ★ Philadelphia Fed Manufacturing Index Signals Continued Weakness

In June 2025, the Philadelphia Fed Manufacturing Index remained constant at -4.0, matching the previous month's figure and not meeting analysts' expectations of -1. This underscores the ongoing sluggishness in the region's manufacturing sector, as demand shows signs of slowing and labor market conditions weaken. While the new orders index experienced a decline, it still stayed in positive territory. The shipments index showed improvement by turning positive, yet both indices continue to lag behind their long-term averages observed during non-recession periods. Significantly, the employment index slipped into negative figures, marking its lowest point since May 2020 and indicating a downturn in manufacturing employment. Though price pressures have slightly eased, the input and output price indexes remain high by historical standards. Additionally, the survey's forward-looking indicators reflect diminishing optimism, with fewer companies anticipating growth over the coming six months.