Philly Fed Index Rebounds to -3.3 in June, Signaling Slower Manufacturing Contraction

The Philadelphia Federal Reserve's Manufacturing Business Outlook Survey index rebounded to -3.3 in June, up from -4.5 in May, indicating a slower pace of contraction in the region's manufacturing sector. The June reading, published on June 18, 2026, was largely in line with economists' expectations of -3.0, suggesting some stabilization after previous declines. Key components showed mixed results. The new orders index improved to -3.9 from -9.4, and the shipments index rose to 1.3 from -11.5. However, the employment index declined to -10.3 from -7.6, signaling further job losses. Both prices paid and prices received indexes increased, with prices paid climbing to 22.5 from 18.7 and prices received edging up to 15.5 from 14.5, suggesting persistent inflationary pressures. The future activity index, a gauge of six-month expectations, decreased to 13.8 from 32.4, indicating a less optimistic outlook.