Declining Manufacturing Activity in New York for March is a New Development for the USA

By Le Figaro with AFP

Published on 03/15/2023 at 14:06

Manufacturing activity in the New York area, in the northeastern United States, remained in the red in March, contracting for the fourth month in a row, but much more strongly than in February and also well more than expected.

The index measuring the evolution of this activity fell by 19 points, to fall to -24.6 points, according to the monthly Empire State survey, published on Wednesday by the New York branch of the American central bank (Fed). and carried out with industrialists in the region.

This surprised analysts who saw the index dip less than that, and settle at -8.0 points. An index below zero means that activity is contracting.

«New orders fell significantly and shipments fell slightly“, Details the New York Fed in its statement, adding that”employment and hours worked fell for the second consecutive month».

Delivery times have shortened for a second consecutive month, suggesting that supply availability has improved and inventories have remained stable. On the inflation side, the rise in prices, both at the entry and at the exit of the factory, “slowed down a bit».

Companies are not very optimistic and only expect “little improvement in conditions over the next six months“. Measured in a highly industrialized region, the New York State manufacturing activity index is considered a good barometer of the evolution of the American economy.