The Philadelphia Federal Reserve Bank's monthly nonmanufacturing activity index fell to minus 25.8 in June from minus 23.6 in the previous month, compared with expectations for an increase to a minus 16.0 reading in a survey compiled by Bloomberg as of 7:35 am ET, indicating more widespread contraction in the sector.
The readings for prices paid and employment both decreased, while the new orders and the sales indexes increased.
The six-month outlooks at both the regional and firm levels declined, with 18.9% of respondents expecting expansion in the region over the next six months, compared with 29.4% that expect contraction, while 46.1% respondents expect no change.