Empire State manufacturing index drops more than expected in April
Business conditions in the New York region deteriorated more than expected in April, according to a survey from the New York Fed.
The Empire State manufacturing index fell to 15.8 from 22.5 the month before, missing expectations for a reading of 18.6. The survey found that 38% of respondents reported improved conditions over the month, while 22% said conditions had worsened.
The new orders index declined to 9.0 in April from 16.8 in March, while the shipments index dropped to 17.5 from 27.0 and the prices paid index printed at 47.4 from 50.3 in March.
Meanwhile, optimism about the six-month outlook among manufacturers plunged, with the index for future business conditions down 26 points to 18.3, marking its lowest level in more than two years.
Pantheon Macroeconomics economist Ian Shepherdson said: "Taken together, we reckon the components are consistent with the national ISM manufacturing index dipping by about one point. That's not much, and the softening in the Empire State could be nothing more than noise, but it might also be a response to the drop in the stock market and all the talk of trade tariffs.
"Either way, the data are consistent with our view that the manufacturing upswing is peaking, though we don't expect a meaningful downturn anytime soon."