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Mid-Atlantic Manufacturing Activity Unexpectedly Continues Decline in June

Manufacturing activity in the Mid-Atlantic region unexpectedly continued to fall in June, according to data released Tuesday by the Federal Reserve Bank of Richmond.

The composite index this month declined further to negative-19 from negative-9 in May, well below the consensus on Econoday for a bounce-back to a print of 2.

Shipments sank to negative-29 from negative-14 last month, while new orders plunged to negative-38 from negative-16. The index for number of employees rose to 23 from 8, according to the regional Fed.

"The wage index also remained elevated, despite a minor downward shift, indicating that a large share of firms continue to report increasing wages," the Fed said.

The future shipments index rose to zero in June from negative-4 in May. The measure for new orders in the next six months dropped to negative-21 from negative-11 last month.

The index for local business conditions in the next six months decreased to negative-19 in June from negative-13 in May, showing manufacturers' pessimism about conditions, according to the Fed.

"On a positive note, there was some indication of supply chain relief as the indexes for vendor lead time and order backlogs both decreased in June from record highs earlier in the year," the Fed said.