New York, NY, April 15--Manufacturing activity in the New York area fell dramatically in April, according to the New York Federal Reserve Bank.
The bank's Empire State Manufacturing index fell to 3.1 in April from a revised 20.2 in March. This is the lowest reading since April 2003.
Economists were expecting the index to sink only to about 17.3 in April from the initial estimate for March of 19.6.
Readings over zero indicate expansion. 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 March, the ISM manufacturing inched lower to 55.2% from 55.3% in the previous month
The new orders index fell to -0.2 in April from 8.6 in March. This is the first negative reading since April 2003
Shipments sank to just above zero from 21.9 in March
The unfilled orders index improved slightly to -8.3 in April from -10.1 in March. This is the third straight negative reading
The employment index fell to 8.6 from 11.3 while the workweek index fell to -4.4 from 9.1. The prices paid index fell to 43.4 from 53.6 in March. The prices received index fell to 13.9 from 16.4
