“Declines in the region’s manufacturing sector were much less in evidence in June,” as the general business conditions index increased to negative 2.2 in June from negative 22.6 in May, this month’s Federal Reserve Bank of Philadelphia Report on Business indicates.
Economists surveyed by Thomson Reuters predicted a reading of negative 17.4 for the index.
“Indexes for general activity, new orders, and shipments showed notable improvement, suggesting recent declines have lessened dramatically,” according to the Fed. “Indicative of ongoing weakness, however, firms reported sustained declines in employment and work hours this month. Most of the survey’s broad indicators of future activity showed continued improvement, suggesting that the region’s manufacturing executives are becoming more optimistic that a recovery in business will occur over the next six months.”
