Thinkstock
593327744
593327744
593327744
593327744
593327744

New York Fed Factory Gauge Slumps to Lowest Since May 2017

Jan. 15, 2019
Expectations for business conditions six months ahead also declined.

Manufacturers began 2019 on a weaker-than-expected footing as a regional Federal Reserve gauge fell to the lowest in more than a year, adding to signs of a slowing U.S. economy.

The Empire State index, a survey of factories in New York state, dropped 7.6 points to 3.9 in January as measures of new orders and employment weakened. That’s the lowest since May 2017, a New York Fed report showed Tuesday. Expectations for business conditions six months ahead also declined to the lowest in almost three years, showing a souring outlook.

Last month, all five regional Fed factory gauges posted cooler readings, the first time they’ve fallen in unison since May 2016. The Empire State index is the first of those regional surveys released for January and may be more closely watched than usual given key U.S. economic data are delayed because of the government shutdown. The next district report, from the Philadelphia Fed, is due for release Thursday.

The latest New York Fed report adds to growing risks in the sector and follows the biggest slump since 2008 in the Institute for Supply Management’s national manufacturing index. Some other measures of manufacturing have remained robust, with U.S. factories in December adding the most workers in a year.

By Katia Dmitrieva

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

Adopting an Open Ecosystem: The Way Forward for Frontline Operations

March 11, 2024
Today's manufacturing tech stack thrives on connectivity, integrating new and legacy players for a seamless operation - not on monolithic systems. Embrace the future of frontline...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!