Philadelphia Factories Face Tough Summer as Orders and Jobs Drop in June

The Philadelphia Federal Reserve’s June 2025 report shows that factories in eastern Pennsylvania, southern New Jersey, and Delaware are having a hard time.

The main manufacturing index stayed at -4.0, which means more companies are shrinking than growing. This is the third month in a row with negative numbers, and it’s worse than experts expected.

One of the most worrying signs is jobs. The employment index fell to -9.8 in June from 16.5 in May.

This means factories are not just slowing down hiring—they are actually letting workers go. If this keeps up, it could hurt families and local businesses that depend on these jobs.

Orders for new products also dropped. The new orders index fell to 2.3 from 7.5. This shows that demand for goods is barely growing.

Shipments, which are goods sent to customers, did improve a bit, but that’s not enough to make up for the weak orders.

Costs for materials and parts are still high, though they are not rising as fast as before.

Philadelphia Factories Face Tough Summer as Orders and Jobs Drop in June

The prices paid index dropped to 41.4 from 59.8, but that number is still well above normal. High costs make it harder for companies to make a profit or lower their prices.

Looking ahead, manufacturers are not feeling confident. The six-month outlook index dropped sharply to 18.3 from 47.2.

This means companies are less sure about the future and are cutting back on plans to spend money on new equipment or buildings.

The capital expenditures index fell to 14.5 from 27.0, a big drop in just one month.

The Philadelphia Fed’s survey is important because it often gives an early warning about the health of the wider U.S. economy.

When factories in this region struggle, it can signal problems for other parts of the country too.

This matters because manufacturing supports many jobs and businesses in the area. When factories slow down, the effects can spread to suppliers, truckers, and local shops.

Right now, the data shows that manufacturers are facing real challenges, and their decisions in the next few months will shape the economic outlook for the whole region.

All the numbers and facts in this story come directly from the official Philadelphia Federal Reserve report for June 2025.