Decline in New York Manufacturing Activity Surpasses Great Recession
New York, N.Y. (PPD) — The New York Federal Reserve’s Empire State Manufacturing Survey showed factory activity in New York plunged to its lowest level ever in April. The headline general business conditions index fell 57 points to -78.2, its lowest level in the history of the survey by a wide margin.
Forecasts ranged from a low of -60.0% to a high of only -26.0%. The consensus forecast was -35.0%.
The previous low recorded was -34.3 during the Great Recession. Only 7% of New York manufacturing firms reported that conditions improved over the month, while 85% reported that conditions had worsened. The new orders index fell 57 points to -66.3, while the shipments index fell 66 points to -68.1.
The index for number of employees tanked 54 points to -55.3, with nearly 60% of respondents indicating lower employment. The average workweek index fell to -61.6, with 65% reporting shorter workweeks. The prices paid index fell 19 points to 5.8 and the prices received index fell to -8.4, pointing to a decline in selling prices for the first time since 2016.
Still, while firms anticipate only a small improvement in business conditions over the next six months, it’s a rosier outlook than the prior month. The index for future business conditions increased 6 points to 7.0.