(NewYorkFed) The index gauging the general business conditions in New York city plunged by 36 points to a contraction zone of minus 11.6 in May.
The fall in manufacturing conditions was underlined by the strongest decline in new orders and shipments since the early days of the pandemic. The new orders index declined by 34 points to minus 8.8, while the gauge for shipments was down by fifty points to -15.4.
Firms pointed to longer delivery times, with the delivery times index holding steady at 20.2. Inventories posted increases.
20% of firms reported improved conditions over the month, while the majority, or 32%, said conditions had worsened.
The index has now entered the negative territory in two of the last three months, despite business activity showing strong gains in April.
In the employment category, the index gauging the number of employees rose by seven points to 14.0. The average workweek index held steady at 11.9.
Following the fall in activity, the index for the future business conditions was little changed at 18.0, with firms becoming less optimistic about the six-month outlook.
SPY is down -0.31% and DXY is down -0.02%.
