By Joshua Kirby
Manufacturing activity again declined sharply in New York State this month, according to a survey published Tuesday, as firms set out a gloomier vision of their business conditions.
The Empire State Manufacturing Survey's general business index fell a massive 29 points to minus 43.7 in January, reaching its lowest point since May 2020, when the state was in the throes of the coronavirus pandemic. The reading is much more negative than the improvement to minus 4 expected by economists, according to a poll by The Wall Street Journal. It marks a continued fall below the zero level that denotes the threshold between likely expansion and likely contraction in the state's manufacturing sector.
"This outsized drop suggests January was a difficult month for New York manufacturers," said Richard Deitz, economic research adviser at the New York Fed. While firms expect conditions to improve over the next six months, optimism is subdued, the survey showed.
The indexes gauging new orders and shipments both fell in January, with inventories also edging lower, suggesting faltering demand. Employment also fell, as did the number of hours worked.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
01-16-24 0847ET
