Economic Data and Growth
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 …
