New York manufacturing activity unexpectedly declines in MayStaff writer ▼ | May 17, 2016
Business activity for New York manufacturers unexpectedly declined in the month of May, according to a report released by the Federal Reserve Bank of New York.
Empire State The New York Fed:
Economists had expected the index to show a much more modest decrease, with the consensus estimate calling for a positive reading of 7.0.
The steep drop by the headline index came as the new orders and shipments indexes also fell into negative territory, pointing to declines in both orders and shipments.
The new orders index slumped to a negative 5.5 in May from a positive 11.1 in April, while the shipments index tumbled to a negative 1.9 from a positive 10.2.
The report also said the prices paid index edged down to 16.7 in May from 19.2 in April, indicating a slowdown in the pace of growth in input prices.
The prices received index also fell to a negative 3.1 in May from a positive 2.9 in the previous month, suggesting a small drop in selling prices.
On the other hand, the New York Fed said the number of employees index inched up to 2.1 in May from 1.9 in April. ■