New York Manufacturing Index Unexpectedly Slides Further Into Negative Territory

(RTTNews) - According to a report released by the Federal Reserve Bank of New York on Monday, New York manufacturing activity fell for a fourth consecutive month in June.

The New York Fed said its general business conditions index slid to a negative 16.0 in June from a negative 9.2 in May, with a negative reading indicating contraction. Economists had expected the index to climb to a negative 5.5.

The unexpected decrease by the headline index partly reflected a substantial downturn by new orders, as the new orders index plunged to a negative 14.2 in June from a positive 7.0 in May.

The report also showed a notable downturn by shipments, with the shipments index tumbling to a negative 7.2 in June from a positive 3.5 in May.

On the other hand, the New York Fed said the number of employees index jumped to a positive 4.7 in June from a negative 5.1 in May, returning to positive territory for the first time since January.

The report also said firms turned optimistic about the outlook, with the future general business conditions index turning positive for the first time since March.

The future general business conditions index surged to a positive 21.2 in June from a negative 2.0 in May.

The report also said the prices paid index slumped to 46.8 in June from 59.0 in May, while the prices received index rose to 26.6 in June from 22.9 in May.

On Friday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity in the month of June.

The Philly Fed's diffusion index for current general activity is expected to rise to a negative 1.0 in June from a negative 4.0 in May, although a negative reading would still indicate contraction.