The manufacturing sector in the Philadelphia region saw a modest contraction in June, according to a report released by the Federal Reserve Bank of Philadelphia on June 16.
The Philly Fed Manufacturing Business Outlook Survey’s diffusion index for current general activity fell to -3.3 in June from 2.6 in May, missing the widely anticipated market expectation of 5.5.
This is the first contraction in manufacturing activity for the region since May 2020, during the pandemic.
The monthly survey polls manufacturing firms in the Third Federal Reserve District, which covers eastern Pennsylvania, southern New Jersey, and Delaware over the status of local business activity.
These unexpected losses in manufacturing come as the new orders index tumbled 35 points to -12.4 in June from 22.1 in May, while the shipments index fell 25 points to 10.8 from 35.3 in the previous month, which indicates a substantial slowdown in growth….