Empire State Index plunges to worst level since recession in August
A widely-followed index of the manufacturing sentiment in the New York area plunged to its worst level since the recession in August.
According to the New York Federal Reserve, the Empire State general business conditions index plummeted to -14.9 from 3.9 in July, way below analysts’ expectations for a 4.5 reading.
The new-orders sub-index nosedived to -15.7 from -3.5, while the shipments index tumbled to -13.8 from 7.9,
However, the index for future business activity climbed to 33.6 from 23.6 the previous month.
"The August reading marks the broadest slowing in activity since the recession; however, given the limited manufacturing base in the New York area, we take this morning’s negative surprise with a grain of salt," analysts at Barclays said in a note.
"We look to Thursday’s release of the Philadelphia Fed manufacturing index for a more reliable reading on the state of Northeast regional manufacturing activity."