New York manufacturing conditions deteriorate as prices surge
Manufacturing activity in New York state contracted sharply in March after only a modest increase the month before, as input price inflation surged.
The headline general business conditions index from the New York Fed's Empire State manufacturing survey slumped 26 points to -20 this month, down from +5.7 in February and the lowest reading since January 2024.
The consensus forecast was for a small contraction, with a figure closer to -1.9.
The new orders index dropped 26 points to -14.9, while the shipments index fell 23 points to -8.5, while both measures tracking employment levels and hours worked moved slightly lower.
Meanwhile, the prices paid index rose five points to 44.9, its highest reading in more than two years, and the prices received index rose three points to 22.4, its highest since May 2023.
Optimism about the outlook "waned considerably" for a second consecutive month: the future business activity index fell 10 points to 12.7 following a 15-point plunge in February.