12:48 PM EDT, 06/16/2025 (MT Newswires) -- New York manufacturing contraction worsened in June amid weakness in new orders and shipments, though firms became positive regarding the outlook, a survey by the Federal Reserve Bank of New York showed Monday.

The Empire State Manufacturing Survey's general business conditions index deteriorated to minus 16 this month from minus 9.2 in May, with activity falling for a fourth straight month, the Fed branch said. The consensus was for a minus 6.3 reading in a survey compiled by Bloomberg.

The index for new orders swung to minus 14.2 in June from 7 last month, while shipments sank to minus 7.2 from 3.5. The employment index swung to 4.7 from minus 5.1, marking its first positive reading since January, according to the survey.

"Delivery times held steady, and supply availability worsened," the New York Fed said. "Input price increases slowed but remained substantial, while selling price increases picked up."

Six months out, the index for business activity rebounded to 21.2 this month from minus 2 in May, rising above zero for the first time since March, the survey showed. The future new order and shipment indexes returned to expansion territory.

"Firms also turned positive about the outlook for future business conditions, expecting activity to increase in the months ahead," said Richard Deitz, economic research adviser at the New York Fed.

In the months ahead, firms expect supply availability to be "only slightly worse," the survey showed. Capital spending plans continued to be "soft," the regional Fed said.

Last month, the US and China agreed to suspend most tariffs on each other's imports for 90 days. After accusing each other of violating the agreement, US and Chinese officials recently agreed on a framework for implementing the pact, subject to approval from US President Donald Trump and his Chinese counterpart, Xi Jinping.