Empire Index Unexpectedly Falls at Quicker Pace in September
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Not only did manufacturing in the New York region unexpectedly contract in September, but it did it at a faster pace that the previous month.
According to data Thursday morning, the New York Fed reported it's general manufacturing index (Empire Manufacturing Index) fell to a minus 8.8, from minus 7.7 in August. September was the weakest reading for the Fed since November 2010.
Economists were looking for a slight increase from August, to a minus 4 reading. Readings of less than zero indicate that companies in the New York, north New Jersey, and South Connecticut region are cutting back.
With the unemployment rate remaining relatively firm in the 9 percent arena, and consumers tightening-up spending, manufacturers may be slowing production to curb inventory build up.
According to Bloomberg, "Six of the report's 10 gauges deteriorated this month. The Empire State gauge of new factory orders fell to minus 8 from minus 7.8 last month. A measure of shipments decreased to minus 12.9, the weakest reading since March 2009, from 3. Employment slumped to minus 5.4, the lowest level in two years, from 3.3."
According to data Thursday morning, the New York Fed reported it's general manufacturing index (Empire Manufacturing Index) fell to a minus 8.8, from minus 7.7 in August. September was the weakest reading for the Fed since November 2010.
Economists were looking for a slight increase from August, to a minus 4 reading. Readings of less than zero indicate that companies in the New York, north New Jersey, and South Connecticut region are cutting back.
With the unemployment rate remaining relatively firm in the 9 percent arena, and consumers tightening-up spending, manufacturers may be slowing production to curb inventory build up.
According to Bloomberg, "Six of the report's 10 gauges deteriorated this month. The Empire State gauge of new factory orders fell to minus 8 from minus 7.8 last month. A measure of shipments decreased to minus 12.9, the weakest reading since March 2009, from 3. Employment slumped to minus 5.4, the lowest level in two years, from 3.3."
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