Economic Data and Growth
Fifth District Manufacturing Slows, but Future Outlook Improves
Manufacturing activity in the Fifth District rose at a slower pace in June after moving up in May, with the composite manufacturing index decreasing from 13 to 4. At the same time, local business conditions turned negative, moving down from 5 to −3 in June. Despite a weakening of current business conditions, manufacturers are more …
Manufacturing PMI Reaches 49-Month High, but Factory Hiring Drops
The S&P Global Flash U.S. Manufacturing PMI rose for the 11th consecutive month from 55.1 to 55.7 in June, a 49-month high. Factory production improved at its fastest rate since July 2021, while new orders growth saw the largest rise since April 2022. Meanwhile, manufacturing employment saw its largest decline since May 2020 amid concerns …
Tenth District Factory Activity Gains Ground
Manufacturing activity grew at a faster pace in the Tenth District in June, with the month-over-month composite index rising to 11 in June from 8 in May. Meanwhile, expectations for future activity were unchanged at 19. The month-over-month activity growth was due to gains in both durable and nondurable manufacturing. At the same time, all …
Housing Starts Drop Sharply, Led by Multifamily Pullback
Building permits decreased 0.7% in May and 0.2% over the year. Permits for single-family homes in May rose 0.6% but fell 1.8% over the year. At the same time, permits for buildings with five or more units declined 3.5% from April but increased 3.0% over the year. In May, housing starts fell 15.4% from April …
New York Factory Growth Slows, but Hiring Gains Continue
Manufacturing activity in New York state expanded at a slower pace in June, with the headline business conditions index falling 13.9 points to 5.7. The new orders index plummeted 19.2 points to 3.5, while the shipments index declined 10.3 points to 8.6, with both remaining in growth territory. Unfilled orders edged up 0.1 point to …
Trade Prices Keep Rising, Led by Fuel and Petroleum Products
U.S. import prices increased 1.9% in May, after rising 2.0% in April, with higher fuel and nonfuel prices driving the increase. Over the year, import prices advanced 6.7% in May, the largest 12-month increase since August 2022. Meanwhile, U.S. export prices stepped up 1.3% in May, driven by higher prices for nonagricultural and agricultural exports. …
Philly Manufacturing Rebounds, Led by New Orders and Hiring Gains
In June, Philadelphia’s regional manufacturing activity expanded after contracting slightly last month, with the index for general business activity rising from -0.4 to 10.3. This month, 32.1% reported increases, while 21.9% reported decreases. New orders rebounded, moving up from -1.7 to 27.3, while shipments rose from 4.9 to 14.9. Meanwhile, the employment index improved and …
Fed Holds Rates Under New Chair; Projections Turn More Hawkish
As anticipated, the Federal Open Market Committee maintained its interest rate target range at 3.50%–3.75% at its June meeting. In a change to its previous statement, the FOMC noted expanding economic activity, productivity growth and strong capital investment. Furthermore, the statement cited strong job gains as well as elevated inflation, attributable to supply shocks in …
Industrial Production Barely Gains While Manufacturing Output Remains Flat
Industrial production edged up 0.1% in May, while manufacturing output stayed the same after increasing 0.7% in April. At 97.9% of its 2017 average, manufacturing production moved up 1.4% from May 2025. Capacity utilization for manufacturing was 75.7%, unchanged from April but up 1.1% over the past year. Capacity utilization remained 2.5 percentage points below …
