Factory activity in New York state plummeted to its lowest level in nearly two years as business conditions deteriorated and cost pressures accelerated, the Federal Reserve Bank of New York reported.
The Federal Reserve Bank of New York’s Empire State Manufacturing Index—a monthly survey to determine the sector’s prevailing economic direction—plunged by 26 points to negative 20 in March, the lowest since May 2023.
This was well below the market estimate of negative 0.75.
Last month, business conditions deteriorated as new orders and shipments fell sharply. Inventories continued to expand, while delivery and supply availability were little changed.
Cost pressures increased for the third consecutive month. Input prices and selling inflation climbed to their highest levels in about two years….