Empire State Manufacturing Survey Plummets in August to Lowest Level Since 2009

The New York Federal Reserve said Monday its Empire State Manufacturing Survey plummeted to -14.92 in August from 3.86 in July, its lowest level since 2009. The reading not only widely missed expectations but also showed contraction.

Economists polled by Reuters had expected the index to rise to 5.00 this month. A reading above zero indicates expansion, while below indicates contraction. The survey of manufacturing plants in the state is one of the earliest monthly guideposts to U.S. factory conditions.

The survey revealed severe losses in new orders and shipments, but surprising optimism regarding future business. The survey’s index on future business conditions rose to 33.64 in August, up from 27.04 in July.

The new orders index was in negative territory for a third month at -15.70 from -3.50 in July, while shipment activity declined to -13.79 from 7.88 in July. The prices paid index fell to 7.27 from 7.45 July, while prices received fell to 0.91 from 5.32 the previous month.

Labor market indicators pointed to little change in employment and hours worked. The index for number of employees edged down one point to 1.8, and the average workweek index actually fell to -1.8.