Factory activity declines in New York
By Greg Robb, MarketWatch
Last Update: 5/16/2005 8:30:36 AM Data provided by
WASHINGTON (MarketWatch) -- Manufacturing activity in the New York area deteriorated sharply for the second straight month in May, the New York Federal Reserve Bank said Monday.
The bank's Empire State Manufacturing index fell to -11.1 in May from a revised 2.0 in April. This was the first negative, and lowest, reading since April 2003.
Readings below zero indicate contraction.
The drop was unexpected. Economists were forecasting the index to rebound to about 10.7 in May from the initial estimate in April of 3.1.
The new orders index dropped to -7.1 from 1.2 in April.
Unfilled orders fell to -17.3 from -8.2.
Shipments rose to 0.8 from -1.0.
The employment index fell to 0.2 in May from 8.5 in April. This is the lowest reading since September 2003.
The workweek index inched higher to -2.5 from -4.4.
The prices paid index slipped to 42.0 from 43.1 in April. The prices received index fell to 8.0 from 13.8. This is the lowest level since February 2004.
The Empire State index is of interest to traders primarily because it's seen as an early forecast of the national Institute for Supply management factory survey due out in two weeks. In April, the ISM manufacturing inched lower to 53.3% from 55.2% in the previous month.
Greg Robb is a senior reporter for MarketWatch in Washington.
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