by Calculated Risk on 6/15/2011 08:30:00 AM

• From the NY Fed: Empire State Manufacturing Survey

The Empire State Manufacturing Survey indicates that conditions for New York manufacturers deteriorated in June. The general business conditions index slipped below zero for the first time since November of 2010, falling twenty points to -7.8.

The new orders and shipments indexes also posted steep declines and fell below zero. The index for number of employees dropped fifteen points to 10.2.

This was well below expectations of a reading of 13.0. This is the first regional survey released for June and shows that manufacturing is contracting.

• From the BLS:

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. ... The index for all items less food and energy increased 0.3 percent in May, its largest increase since July 2008.

Even though the rate of inflation slowed, it was still higher than expected. The pickup in core inflation is bad news - I'll have more on inflation later.

• From the NY Times: Moody's to Review French Banks Over Greece Exposure

French banks were punished Wednesday for their exposure to the Greece after Moody’s Investors Service placed three of the largest on review for a possible downgrade.

Moody’s cited “concerns” about the exposure of BNP Paribas, Société Générale and Crédit Agricole to the Greek economy ...