Philly factory activity contracts sharply in June

WASHINGTON (MarketWatch)
Manufacturing activity in the Philadelphia region contracted at a faster pace in June, the Federal Reserve Bank of Philadelphia reported Thursday
The Philly Fed diffusion index fell to negative 16.6 in June from negative 5.8 in May
This is the lowest level since August 2011
Readings below zero indicate contraction
The decrease in the index was unexpected
Economists were looking for the index to improve to 0.0
The details of the report were generally weaker except for employment data, which was mixed
The new orders index fell to negative 18.8 from negative 1.2, while the shipments index fell to negative 16.6 from 3.5
The index for number of employees improved to 1.8 in June from negative 1.3 in the prior month
The average workweek dropped to negative 19.1 from negative 5.4
Inflationary pressures eased
The prices paid index dropped to negative 2.8 from 5.0 in the prior month