The Empire State Manufacturing Survey general business-conditions index fell 5 points to -6.8 in October as manufacturing conditions weakened for a third straight month.
It’s the index’s weakest reading since May when it hit -9.0.
The results of the October survey indicate that business activity “continued to decline” for New York manufacturers, the Federal Reserve Bank of New York said in a news release issued Monday.
The October reading of -6.8 followed index levels of -2.0 in September, -4.2 in August, and 0.6 in July.
A negative reading indicates a decline in manufacturing activity, while a positive number on the index indicates expansion or growth in the sector.
The survey found 27 percent of New York manufacturer respondents reported that conditions had improved over the month, while 33 percent said that conditions had worsened.
The new-orders index edged up but remained negative at -5.6, indicating an “ongoing drop” in orders, and the shipments index increased to -0.6, suggesting that shipments were “essentially flat,” the New York Fed said.
Labor-market conditions remained “weak,” with both employment levels and the average workweek reported as “lower.”
Price indexes increased somewhat, and continued to signal moderate input-price increases and a slight increase in selling prices.
Indexes for the six-month outlook suggested that manufacturing firms expect conditions to improve in the months ahead.
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