Manufacturing in the region covering eastern Pennsylvania, southern New Jersey and Delaware remained in decline for the seventh consecutive month in June, as the slowdown accelerated following the previous month's improvement, according to the Philadelphia Fed's Manufacturing survey.
The general activity index decreased in June to -17.1 from May's -15.6, led by negative figures in new orders, employment and shipments as prices surged significantly faster than in previous months.
"All broad indicators of activity were in negative territory and had declined from their readings in the previous month," the report said.
New orders fell nine points to come in at -12.4 while employment fell to -6.9 in June following the previous month's -1.0 reading. Shipments fell back into negative territory at -6.7, down from 2.2 in the previous month.
Prices paid jumped 16 points to the highest reading since November 1980 at 69.3, compared to May's 53.6 level.
"Despite the weakness in current activity, manufacturers continue to expect conditions to improve six months out, but they are slightly less optimistic this month," the report noted.
"Cost pressures remain widespread, with a much larger share of firms reporting increases for input prices this month. The share of firms reporting higher prices for final manufactured goods, however, did not show a corresponding increase this month."
In supplemental questions for the report, 65% of respondents said they expect prices to increase over the next three months, with the average respondent expecting a 5.4% increase.
By Patrick McGee and edited by Nancy Girgis