New York manufacturing activity has unexpectedly seen a substantial contraction in the month of August, according to a report released by the Federal Reserve Bank of New York on Monday.
The New York Fed said its general business conditions index plummeted to a negative 31.3 in August from a positive 11.1 in July, with a negative reading indicating a contraction in regional manufacturing activity.
Economists had expected the index to show a much more modest decrease to a positive 8.5.
Looking ahead, the New York Fed said firms did not expect much improvement in business conditions over the next six months.
