Investing.com - The Philadelphia Fed's manufacturing index fell in June, to a reading of 19.9 from 34.4 in May, the Philly Fed reported on Thursday.
The consensus forecast had been for a reading of 28.9.
Any reading above zero indicates improving conditions, below indicates worsening conditions.
With regard to future activity in the sector, new orders fell to 17.9 in June, compared to last month's reading of 40.6.
The employment index advanced to 30.4 in June, compared to a prior reading of 30.2, indicating a faster pace of hiring.
Meanwhile, the prices paid index decreased to 51.80 this month, from 52.60.
The Philly Fed noted that all the broad indicators remained positive, although the indicators for general activity and new orders fell notably.
The report highlighted that firms continued to report higher prices for purchased inputs and their own manufactured goods.
“Looking ahead six months, the firms remain optimistic overall, but the survey’s future indicators continued to moderate,” the Philly Fed concluded.