The Empire State Manufacturing Survey general business-conditions index fell 42 points in August to -31.3, the second-largest monthly decline in the index on record.
The August reading — based on firms responding to the survey — indicates business activity “declined sharply” in New York state, the Federal Reserve Bank of New York said in its Monday report.
A negative index number indicates a decline in the sector, while a positive figure indicates expansion or growth in manufacturing activity.
Economists had forecast a reading of 5.0 for the general business-conditions index, according to a poll by The Wall Street Journal.
The Empire State Manufacturing Survey found 12 percent of respondents reported that conditions had improved over the month, while 44 percent indicated that conditions had worsened, the New York Fed said.
Survey results indicate that the new-orders index dropped 36 points to -29.6, and the shipments index plummeted nearly 50 points to -24.1, indicating a “sharp decline” in both orders and shipments.
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 state. On average, about 100 executives return responses.