New York Manufacturing Activity Drops Significantly In March

(RTTNews) - The Federal Reserve Bank of New York released a report on Monday showing regional manufacturing activity dropped significantly in the month of March.

The New York Fed said its general business conditions index plunged to a negative 20.0 in March after jumping to a positive 5.7 in February, with a negative reading indicating contraction. Economists had expected the index to fall to a negative 1.9.

The sharp pullback by the headline index partly reflected substantial downturns by both new orders and shipments.

The report said the new orders index plummeted to a negative 14.9 in March from a positive 11.4 in February, while the shipments index dove to a negative 8.5 in March from a positive 14.2 in February.

The number of employees index also edged down to a negative 4.1 in March from a negative 3.6 in February, indicating a modest decrease in employment.

Meanwhile, the New York Fed said the prices paid index climbed to 44.9 in March from 40.2 in February, reaching its highest level in over two years.

The prices received index also rose to 22.4 in March from 19.6 in February, hitting its highest level since May 2023.

Looking ahead, the report said optimism about the outlook waned considerably for a second consecutive month, as the index for future business activity slumped to 12.7 in March after tumbling to 22.2 in February.

The Federal Reserve Bank of Philadelphia is scheduled to release its report on regional manufacturing activity in the month of March on Thursday.

Economists currently expect the Philly Fed Index to fall to 12.1 in March after plunging to 18.1 in February, but a positive reading would still indicate growth.