New York Manufacturing Activity Unexpectedly Contracts In June
June 17 2019 - 5:53AM
RTTF2
Manufacturing activity in New York took a sharp downward turn in
the month of June, according to a report released by the Federal
Reserve Bank of New York on Monday, with the index of activity in
the sector showing a record monthly decline.
The New York Fed said its general business conditions index
plunged to a negative 8.6 in June from a positive 17.8 in May, with
a negative reading indicating a contraction in manufacturing
activity. Economists had expected the index to drop to a positive
10.0.
With the much bigger than expected decrease, the general
business conditions index recorded its first negative reading in
over two years.
The nosedive by the headline index was partly due to a downturn
in new orders, with the new orders index plummeting to a negative
12.0 in June from a positive 9.7 in May.
The shipments index also tumbled to 9.7 in June from 16.3 in
May, although the positive reading still indicated growth.
The report said the number of employees index turned negative
first the first time in over two years, slumping to a negative 3.5
in June from a positive 4.7 in May.
The prices received index also slid to 6.8 in June from 12.4 in
May, while the prices paid index inched up to 27.8 from 26.2 in the
previous month.
Looking ahead, the New York Fed said the indexes assessing the
six-month outlook were generally lower than last month, with the
index for future business conditions falling to 25.7 in June from
30.6 in May.
The Federal Reserve Bank of Philadelphia is scheduled to release
its report on regional manufacturing activity in the month of June
on Thursday.
The Philly Fed Index is expected to drop to 11.5 in June after
jumping to 16.6 in May, with a positive reading indicating growth
in manufacturing activity.
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