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UPDATE:Manufacturing in the Northeast slowed from a strong May, with new data out of the Federal Bank of New York registering tepid growth in June.
The headline business conditions index declined to 2.29 from 17.09 one month ago. A reading above zero indicates expansion.
Economists polled by Bloomberg had forecast a smaller drop to 12.50.
Employment conditions also worsened in the month, with the number of employees index falling 8.1 points to 12.4 and hours worked declining 9 points to 3.1.
However manufacturers in the Fed’s second district, which includes New York, northern New Jersey, and Fairfield County in Connecticut, said they planned more robust capital expenditures over the second half of the year.
“40-three per cent said that they expected to increase capital spending over the next six to twelve months, while just 16 per cent planned reductions—a somewhat more positive balance than in the August 2010 survey,” the Fed said in its statement.
Below, conditions recorded in the report over the past decade.
Minutes away from the first major data point of the day: the Empire Fed Manufacturing Report.
Economists polled by Bloomberg expect the key read of business conditions in the New York region to fall slightly, but to continue to show growth. Consensus is for a drop from 17.09 to 12.50 in June.
A reading above zero indicates growth.