The Federal Reserve Bank of New York reported that its Empire State Manufacturing Survey general business-conditions index fell 2.2 points to 7.8 in the February survey.
Economists and analysts had been expecting a reading of about 9, according to Briefing.com and MarketWatch.
Despite the decline, the New York Fed said the figure suggests “that conditions for New York manufacturers improved modestly for a second consecutive month.” That’s because index readings above zero represent improving conditions.
The survey found 29 percent of manufacturing respondents reported that conditions had improved, while 21 percent indicated that manufacturing activities had worsened.
The new-orders index fell five points to 1.2, which is “evidence that orders were flat,” the New York Fed said. The shipments index climbed to 14.1.
Employment indexes pointed to an increase in employment levels and “little change” in the average workweek.
The prices-paid index inched up two points to 14.6, indicating “continued moderate” input-price increases. The prices-received index fell nine points to 3.4, suggesting a “slowdown” in selling-price increases.
Indexes for the six-month outlook, while “generally positive,” conveyed “markedly less” optimism than in recent months, according to the New York Fed.
The index for future general-business conditions fell 23 points. The capital-spending index shot up 18 points to 32.6, its highest level in more than three years, it added.
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.