The report from the New York Federal Reserve showed on Monday that manufacturing activity in the New York region took a sharp turn downward in June.

According to the survey, NY Fed Empire State manufacturing index came in at -8.60 this month compared to an unrevised 17.8 in May. That marked the first negative reading for the index in more than two years.

Economists had expected the index to come in at 12.0. 

Anything below zero signals contraction. 

According to the report, the new orders index fell twenty-two points to -12.0, indicating a decline in orders, and the shipments index dropped seven points to 9.7, pointing to a modest increase in shipments. Meanwhile, unfilled orders declined, delivery times were somewhat shorter, and inventories moved slightly lower. The index for number of employees went down eight points to -3.5, its first negative value in over two years, pointing to a small decline in employment levels. On the price front, the prices paid index was little changed at 27.8, while the prices received index decrease six points to 6.8.