The Empire State Manufacturing Survey general business-conditions index “plunged” 57 points to -78.2 in April, “its lowest level in the history of the survey,” the Federal Reserve Bank of New York reported Wednesday.
The sharp drop reflected the effects of the coronavirus pandemic, which has resulted in a shutdown of non-essential business across the state and most of the nation.
Wall Street analysts had been expecting a reading of -35 on the Empire State Survey’s benchmark index.
The April report indicates “business activity plunged in New York,” the New York Fed said. A negative reading on the index indicates a decline in the sector, while a positive number points to expansion or growth in manufacturing activity.
The survey found 7 percent of respondents reported that conditions had improved over the month, while 85 percent reported that conditions had worsened, the New York Fed said.
Though current conditions were “extremely weak,” firms expected conditions to be “slightly better” six months from now, the New York Fed said.
The New York Fed 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. On average, about 100 executives return responses.
Visual credit: Federal Reserve Bank of New York website