NEW YORK — Manufacturing activity in New York State contracted in June, according to the latest Empire State Manufacturing Survey released by the Federal Reserve Bank of New York on Monday.
The headline general business conditions index fell to -16.0 in June from -9.2 in May, its lowest level in three months, the New York Fed said. A reading below zero indicates contraction. The survey was conducted between June 2 and June 9.
New orders and shipments posted negative readings, while employment showed modest gains. The new orders index stood at -14.2 and the shipments index at -7.2. The employment index rose to 4.7, its highest since late 2022.
The decline came as input prices continued to rise, though at a moderated pace from recent peaks. The prices paid index remained elevated, while delivery times and supply availability showed mixed signals. Inventories posted a slight positive reading.
"Manufacturing activity contracted in New York State," the New York Fed reported in its summary of the survey findings. Details on the exact number of respondents were not specified in the release, though the survey typically polls around 200 manufacturing executives.
The Empire State survey is a monthly diffusion index that captures changes in business conditions. Readings above zero signal expansion and below zero indicate contraction. The June result reversed some of the gains seen in prior months, when the index had reached 19.6 in May, its highest in over four years.
Forward-looking indicators showed some improvement in optimism despite the current contraction. The index for future business conditions rose, with firms expecting better conditions over the next six months. Capital spending plans and employment expectations were also noted as positive in the outlook.
Economists monitor the survey as an early indicator of regional manufacturing trends that can provide signals for the broader U.S. economy. The June data reflect responses collected before mid-month developments.
As of Monday, the full report and detailed component breakdowns were available on the New York Fed's website. Further analysis of the data and comparisons with national manufacturing indicators, such as the ISM report, are expected in coming days. The next Empire State survey for July is scheduled for release in mid-July.
