The Empire State Manufacturing Survey general business-conditions index plummeted 23 points to -11.9 in October, pointing to current contraction in the state’s manufacturing industry.
The index had climbed 16 points to 11.5 in September with manufacturing activity expanding for the first time since November 2023 and hitting its highest level in 30 months. The general business-conditions index is the monthly gauge of New York state’s manufacturing sector.
Based on manufacturing companies responding to the survey, the October reading indicates business activity “contracted modestly” in New York state, the Federal Reserve Bank of New York said in its Tuesday report.
A negative reading on the general business-conditions index indicates a decline in the sector, while a positive index number shows expansion or growth in manufacturing activity.
The survey found “new orders fell, and shipments edged lower,” the New York Fed said.
The survey report also found that “despite the weakness in general business conditions, optimism about the six-month outlook grew strongly,” per the New York Fed.
The Federal Reserve Bank of New York distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York state. On average, about 100 executives return responses.