The Philadelphia Fed Manufacturing Business Outlook Survey’s General Activity Index was unchanged at -4.0 (vs -1.5 expected) in June, signaling continued contraction in regional factory activity.

• New Orders fell -5.2 pts to 2.3, while Shipments rose 21.3 pts to 8.3, its first positive reading since March.
• Employment dropped sharply, with the index falling -26.3 pts to -9.8, its lowest since May 2020. The Average Workweek index saw a smaller drop, slipping to -1.6 from 2.0 previously.

• Prices Paid fell -18.4 pts to 41.4, and the Prices Received index dropped -14.1 pts to 29.5, both still elevated but moderating.
• The Future Activity Index dropped -28.9 pts to 18.3, indicating less confidence in six-month growth; future new orders and shipments also declined.

• In special questions, 40.7% of firms reported a drop in Q2 production vs Q1, and most firms continued operating at 70–80% capacity. Labor supply and uncertainty were cited as key constraints.