FX.co ★ 5th District Manufacturing Decline Slows

The composite manufacturing index for the US Fifth District saw a modest improvement in June 2025, rising by two points to a figure of -7, which aligns with market predictions. This slight uptick highlights a less pronounced decline in the factory orders volume (-12 compared to -14 in May), while the contraction in shipments eased significantly (-3 compared to -10). Meanwhile, order backlogs continued to fall sharply (-20 versus -19). Looking ahead, there is a positive outlook for new orders, with the index rebounding to 5 from -3. This optimism is likely driven by expectations that tariffs may be less stringent than initially anticipated, potentially boosting demand from international clients.