Manufacturing activity in New York State has contracted for the fourth consecutive month, but the outlook has improved.

Manufacturing activity in the state of New York contracted more than expected in June, with both new orders and shipments decreasing, but expectations improving. Data released on Monday showed that the manufacturing index of the New York Federal Reserve Bank dropped by nearly 7 points to -16, marking the fourth consecutive month of contraction. An index below zero indicates a contraction in manufacturing activity. Economists had forecasted a median of -6. However, the future outlook index, which measures business conditions for the next six months, jumped by over 23 points, the largest increase in nearly five years. This survey data was collected from June 2nd to 9th, shortly after the temporary agreement was reached to ease the trade war between the US and China. Meanwhile, the prices paid index fell by over 12 points to 46.8, the largest drop in nearly two years. Manufacturers' price expectations also declined. The prices received index rose to its second-highest level since early 2023. Price expectations for received prices also increased. The report also showed that the new orders index fell by over 21 points to -14.2, while the shipments index dropped to -7.2. Both of these indicators were at their weakest levels in three months.