The Federal Reserve Bank of Philadelphia released a report on Thursday showing regional manufacturing activity contracted at a modestly faster rate in the month of June.<\/p>\n
The Philly Fed said its diffusion index for current activity fell to a negative 13.7 in June from a negative 10.4 in May, with a negative reading indicating contraction. Economists had expected the index drop to a negative 14.0.<\/p>\n
The modest decrease by the headline index partly reflected an accelerated contraction in new orders, as the new orders index slipped to a negative 11.0 in June from a negative 8.9 in May.<\/p>\n
Meanwhile, the shipments index surged to a positive 9.9 in June from a negative 4.7 in May, reaching its highest level since January.<\/p>\n
The number of employees index also jumped to a negative 0.4 in June from a negative 8.6 in May, although the negative reading still indicates slight contraction.<\/p>\n
The report also said the prices paid index edged down to 10.5 in June from 10.9 in May, while the prices received index climbed to a positive 0.1 in June from a negative 7.0 in May.<\/p>\n
Looking ahead, the Philly Fed said most future indicators improved but noted expectations for growth over the next six months remained tempered.<\/p>\n
The diffusion index for future general activity soared to a positive 12.7 in June from a negative 10.3 in May, showing the first positive reading in four months and the highest reading since March 2022.<\/p>\n
Meanwhile, a separate report released by the Federal Reserve Bank of New York on Thursday showed a significant turnaround in regional manufacturing activity in the month of June.<\/p>\n