New York manufacturing activity unexpectedly contracted in the month of May, 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 plunged to a negative 11.6 in May from a positive 24.6 in April. A negative reading indicates a contraction in regional manufacturing activity.
Economists had expected the index to slump to a positive 15.5, which would have still indicated growth in the sector.
Looking ahead, the New York Fed noted firms expressed less optimism about the six-month outlook than they did earlier this year.
