Economy

Manufacturing activity tumbles through March in New York state

March 15, 2024

New York state manufacturing activity slipped deeper into negative territory this month, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York. The General Business Conditions Index fell in March to -20.9. This is the third consecutive month the reading has indicated deteriorating business conditions.

“Manufacturing activity fell significantly in New York State in March, with a decline in new orders pointing to softening demand,” noted Richard Deitz, an economic research advisor at the New York Fed. “Labor market conditions remained weak as both employment and hours worked decreased.”

On a three-month moving average basis (3MMA) the index eased to a 45-month low of -22.33 in March (Figure 1). Since 2010, the only instances we have seen a 3MMA lower than this March measure were the months of March, April, and May 2020.

The manufacturing index saw significant swings in the first two months of this year, plummeting 29 points in January and then rebounding 41 points in February, remaining in negative territory in both months. In 2023, the index peaked at 10.8 in April and has only indicated business condition improvements for eight months out of the last two years.

An interactive history of the Empire State Manufacturing Index is available on our website.

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.