New York business conditions unexpectedly deterioate in August

Business conditions in the New York region unexpectedly deteriorated in August, according to a survey from the New York Fed.

The Empire State manufacturing index fell to -4.2 from 0.55 the month before, which was below expectations for an increase to 2.50.

The new orders index remained near zero, while the shipments index climbed eight points to 9.0.

Meanwhile, the index for future business conditions dropped for a second consecutive month, down six points to 23.7.

Pantheon Macroeconomics said the soft headline hides stronger sub-indexes. “Overall, we think manufacturing is now expanding slowly, but no boom is in prospect,” it said.