New York's manufacturing sector saw a significant contraction in March, as reported by the Federal Reserve Bank of New York. The general business conditions index which measures this, fell drastically from -2.4 in February to -20.9 in March. This negative number indicates an economic contraction, which was even worse than the anticipated fall to -7.0.
The steep fall in the index was part attributed to a higher rate of contraction in new orders. The new orders index fell to -17.2 in March from -6.3 in February. Additionally, the shipments index also declined into negative territory, dropping from +2.8 in February to -6.9 in March, which indicates a downturn in shipments.
The report also suggested that employment decreased, with the employment index falling to -7.1 in March from -0.2 in February. The report showed the prices paid index fell from 33.0 in February to 28.7 in March, while the prices received index rose marginally from 17.0 in February to 17.8 in March.
Despite the downturn, companies anticipate conditions to improve in the near future. However, overall business optimism remains low, with the future business conditions index edging up slightly to 21.6 in March from 21.5 in February.
