Factory activity in the U.S. central Atlantic region contracted in June for the second consecutive month, according to a survey from the Federal Reserve Bank of Richmond published Tuesday.
The Richmond Fed said its Fifth District Survey of Manufacturing activity’s index pluned to minus 19 in June from minus nine in May. Economists had expected the index to recover to a positive reading of two, according to Econoday.
Minus 19 is the lowest reading since May 2020, when the economy was staggering from the initial pandemic lockdowns.
Readings above zero indicate an expansion of activity. Negative readings indicate activity contracted.
The local business conditions index continued to decline in June, falling to minus 32. Firms also grew less optimistic about conditions in the next six months as the expectations index decreased to minus 19 in June from minus 13 in May.