Empire State manufacturing index plunges in June

Forex Pros – The New York Federal Reserve’s index of manufacturing conditions tumbled unexpectedly in June, falling into negative territory for the first time since November, official data showed on Wednesday.

In a report, the Federal Reserve Bank of New York said that its general business conditions index tumbled to -7.8 in June from 11.9 in May. 

Analysts had expected the index to climb to 13.0 in June.

On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.

The new orders and shipments indexes also posted steep declines and fell below 0.0. The index for number of employees dropped fifteen points to 10.2.

The indexes for both prices paid and prices received were positive but lower than last month, suggesting that increases in input prices and selling prices had slowed.

Although future indexes were generally above zero, they were well below last month's levels, indicating that the level of optimism about the six-month outlook had deteriorated significantly.

Following the release of the data, the U.S. dollar was up against the euro, with EUR/USD tumbling 1.16% to trade at 1.4274.

Meanwhile, the outlook for U.S. equity markets was sharply lower. The Dow Jones Industrial Average futures pointed to a loss of 0.88%, S&P 500 futures indicated a decline of 0.9%, while the Nasdaq 100 futures slumped 0.92%.




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