The manufacturing sector in New York State contracted in October for the third straight month even as inflationary pressures worsened, a survey by the Federal Reserve Bank of New York showed Monday.
The Empire State Manufacturing Survey’s general business conditions index fell to minus 9.1 in October from minus 1.5 in September. Forecasters surveyed by Econoday thought the index would fall only to negative 2.5.
The reading indicates that factory activity is declining at a more rapid pace than the previous month.
The drop came because far fewer companies said that business conditions improved than previously. In September, 30.4 percent said conditions were getting better and 31.8 percent said they were getting worse. In October, the share saying things were better fell to 22.8 percent while the share saying things were worse ticked up to 31.9 percent.
Demand for goods stalled. The new orders index was unchanged at 3.7, indicating what the New York Fed described as a “slight increase” in new orders The shipments index fell to minus 0.3 from 19.6.
The index for the number of employees was little changed at 7.7, signaling a modest increase in payrolls. The average workweek index climbed to 3.3, suggesting a small increase in hours worked.
The prices paid index rose nine points to 48.6. This had fallen in each of the three prior months. The prices received index held steady at 22.9.
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