Big Miss for NY Manufacturing Index

Manufacturing conditions in the Northeast have deteriorated rapidly over the last month, the New York Federal Reserve reporting that the Empire State manufacturing index dipped into negative territory for the first time since last November.

In a survey where readings above and below zero indicate expansion and contraction, respectively, and with a consensus estimate for a reading of +10, the general business conditions index fell almost 20 points, from +11.88 in May to -7.79, in June while the important new orders component fell even more sharply, from +17.19 to -3.61.

Shipments plunged from +25.75 to -8.02 and about the only good news in the report was that prices paid saw a modest decline, down from 69.89 in May to 56.12 in June, a reading that is still quite high by historical measure.