The manufacturing sector in New York experienced a downturn, with key indicators such as orders and shipments weakening. Recent data revealed that the New York Federal Reserve's general business conditions index fell by 23.4 points to -11.9, marking a five-month low and indicating contraction. This figure was below predictions from economists surveyed by Bloomberg.
Despite the current challenges, manufacturers in the state have shown increased optimism regarding future economic prospects. The six-month outlook for overall activity surged to a three-year high of 38.7. It is worth noting that this index has experienced significant monthly fluctuations over the past two years.
Other regional Federal Reserve manufacturing indices, expected in weeks to come, will provide a broader perspective on the sector. The New York Fed's report is the first of these to be released.
Specifically, the new orders index fell nearly 20 points to -10.2, after reaching its highest level since April 2023. The shipments index dropped by about 21 points to -2.7. On a positive note, employment indicators rose to 4.1, marking expansion for the first time in a year, with increases in work hours.
