The New York Fed manufacturing index fell to 4.48 in February, from 12.51 the month prior, widely missing Wall Street’s expectation of a reading of 9.
Readings in the New York Fed manufacturing index that are above 0 indicate expansion, while those below point to contraction. Though the reading is still above zero, is represents more slowing in the sector that traditionally provides American working families with good paying jobs.
The New York Fed manufacturing index, sometimes referred to as the New York Empire index, is an early index and one of the earliest assessments of the U.S. manufacturing sector, with midwestern indexes shortly following.
The news is part of a string of disappointing economic data released Tuesday. The National Association of Home Builders’ gauge of homebuilder sentiment fell to 46 in February from 56 the month prior. It was the lowest reading since May.