Manufacturing in New York Area Contracts

New York, NY, Feb. 17, 2009--Manufacturing in the New York area contracted at a record pace in February, the New York Federal Reserve Bank said.

The bank's Empire State Manufacturing index fell to negative 34.7 in February from negative 22.2 in January.

While 16% of respondents said conditions had improved, 51% said that they had worsened.

New orders also fell to a record low. Shipments improved to negative 8.1 from a negative 13.1. The index is of interest to investors and economists primarily because it's seen as an early indicator of what the Institute for Supply Management's February national factory survey due out in two weeks may show.

In January, the ISM manufacturing index rose slightly to 35.6%, raising hope that worst of the decline in manufacturing was over.