Manufacturing Levels in New York State Plummet to 2023 Lows, Far Below Expectations

Manufacturing activity in New York state fell sharply in May, according to the Empire State Manufacturing Survey released by the Federal Reserve Bank of New York. The headline general business conditions index plunged 43 points, to negative 31.8, drastically falling below the expected level of negative 2.5. The survey reveals that new orders and shipments also plummeted, in stark contrast to last month’s significant increase.
Employment and hours worked declined for a fourth consecutive month, and prices increased slightly.
The report shows that both delivery times and inventories contracted in May, with delivery times shortening somewhat. The index for the number of employees remained negative at negative 3.3, and the average workweek index held below zero at negative 3.5, indicating a slight decline in employment and hours worked. While the prices paid index was little changed, the prices received index held steady at 23.6, suggesting a minimal change in the pace of price increases….