The Empire State Manufacturing Survey general business-conditions index fell more than 5 points to 0.6 in July on declines in new orders and shipments.
The survey results indicate that business activity “flattened out” for New York manufacturers, the Federal Reserve Bank of New York said in a news release issued Friday.
A positive reading on the index indicates expansion or growth in the sector, while a negative reading points to a decline in manufacturing activity.
Economists polled by MarketWatch expected an index reading of 6.0 in July.
The Empire State survey found 31 percent of respondents reported that conditions had improved over the month, while 30 percent reported that conditions had worsened, the New York Fed said.
The new-orders index and the shipments index both fell to levels not far from zero, a sign that orders and shipments were “little changed.”
Labor-market indicators pointed to a small decline in employment levels and hours worked.
The prices-paid index held steady at 18.7, suggesting that moderate input-price increases were continuing, and the prices-received index held near zero, indicating that selling prices remained “steady.”
Firms were less optimistic about future conditions compared to last month, according to the New York Fed.
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.
Contact Reinhardt at ereinhardt@cnybj.com