Economy

New York Manufacturing Plummets in June

Written by Sandy Williams


The Empire State Manufacturing Index plunged 26 points in June to register -8.6 for its first negative reading in two years. Manufacturing growth in New York did an about face from May’s six-month high with the new orders index plummeting 22 points and shipments 7 points. The employment index fell to -3.5, while the average workweek length index slid to -2.2.

Backlogs declined, delivery times were shorter and inventories moved lower, said the Federal Reserve Bank of New York.

Input prices changed little from May but prices received declined six points to 6.8, falling for the fourth consecutive month.

The future outlook index also moved lower in June. The index for future business conditions fell five points to 25.7, with new orders and shipments both registering declines.

Reaction to the unexpected decline ranged from a “shockingly weak” and a “caution flag” to a “temporary response to the Mexico tariff fiasco,” said MarketWatch. Economists widely missed in their forecast for the index, staying positive and ranging from 10 at Econoday to 11.5 at The Wall Street Journal.

Below is a graph showing the history of the Empire State Manufacturing Index. You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging in to or navigating the website, please contact us at info@SteelMarketUpdate.com.

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