Manufacturing In New York Contracted

Manufacturing in the New York region shrank in June as customers reduced orders because of the slowdown in consumer spending and business investment, said a report of the Federal Reserve Bank of New York on Monday.

The Federal Reserve Bank of New York's general economic index dropped to minus 8.7 from minus 3.2 a month earlier, the bank said.

The New York Fed's new orders index declined to minus 5.5 from minus 0.5, while shipments dropped to minus 6.5 from 4.6.

The report showed raw-material costs continue to hamper business. The index of prices paid eased to 66.3 from a record 69.6. The gauge of prices received increased to 26.7, the highest since January 27.4, from 15.2.