Mid-Atlantic manufacturing contracts again, employment drops, Philly Fed says
June 20 (Reuters) - A gauge of manufacturing activity in the U.S. Mid-Atlantic region contracted for a third straight month in June, and factory employment fell by the most since the early months of the COVID-19 pandemic five years ago in a sign that President Donald Trump's tariffs are starting to weigh on output.
The Federal Reserve Bank of Philadelphia's monthly manufacturing index this month was negative 4.0, unchanged from May. It has not registered growth since March. Economists polled by Reuters had expected a reading of negative 1.0.
Measures of new orders and employment both slid. The employment index reading of negative 9.8 was the lowest since May 2020 when the pandemic had sent unemployment briefly spiraling higher. One in five firms reported drops in their payrolls, roughly twice the number reporting an increase, and hours worked dropped.
The report is the latest in the business survey category to show weakening activity and a softening job market.
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