The New York
Federal Reserve reported on Monday that its latest Empire State Manufacturing
Survey found that manufacturing activity in the New York State shrank significantly
in
early March after a modest expansion in the previous month.
According to
the survey, the NY Fed Empire State manufacturing index tumbled from 5.7 in February
to -20.0 this month, indicating that business activity in the New York region’s
manufacturing sector contracted at the sharpest pace in 14 months.
Economists
had foreseen the index to slip to -0.75.
A
reading below
zero signals contraction.
According to
the report, the new orders index tumbled 26.3 points to -14.9 and the shipments
index plunged 22.7 points to -8.5, indicating that both orders and shipments reduced
after increasing last month. In the meantime, the unfilled orders index decreased
3.1 points to -2.0, pointing to a marginal drop in unfilled orders. The
inventories index increased 4.6 points to 13.3, the highest level in more than
two years, signalling that business inventories continued to grow this month. The
delivery times index fell 4.4 points to 1.0 and the supply availability index increased
1.2 points to -1.0, suggesting that delivery times and supply availability were
little changed. The employment index slipped 0.5 point to -4.1, implying a
small decrease in employment.
On the price
front, the prices paid index jumped 4.7 points to 44.9 in March (its lowest
level in more than two years), while the prices received index climbed
2.8 points to 22.4 (its highest reading since May 2023.), indicating that the
paces of input and selling price increases accelerated again.