The Empire State monthly index fell 42 points to -31.3, recording its second biggest drop since this survey began.
Manufacturing activity in the New York area fell back into the red in August, the index measuring it even recorded its largest drop since April 2020, according to the Empire State monthly index published on Monday by the American central bank (Fed ).
The index fell by 42 points, and thus fell to -31.3, recording its second largest drop since this survey existed, and falling to one of the lowest levels in its history, according to this survey carried out among industrialists. the region, and considered a good barometer of the evolution of the American economy.
Activity is considered contracting when the index is below zero.
Companies in the manufacturing sector have indeed faced a plunge in new orders and shipments, as well as a reduction in order books.
Delivery times, however, held steady for the first time in nearly two years and inventories rose slightly, the Fed said.
Labor market indicators pointed to a slight increase in employment, but a decline in the average workweek.
And, while inflation in the United States slowed last month, for the first time in a year and a half, the index of prices paid by manufacturers for their purchases fell – but remains high – that of prices sales of their products remained stable.
The companies surveyed “do not expect a great improvement in economic conditions over the next six months,” said the Fed.
The Empire index, measured in a highly industrialized region, had rebounded in July, following two months of contraction.
