NY manufacturing activity deteriorates sharply in March

Manufacturing activity in the New York region deteriorated sharply in March, according to data released on Wednesday.

The New York Fed’s Empire State index fell to -24.6 from -5.8 in February, coming in well below expectations for a decline to -8.0.

According to the survey, 20% of respondents reported that conditions had improved over the month, while 45% said they had worsened.

The new orders index declined to -21.7 in March from -7.8 the month before, while the shipments index came in at -13.4 compared to 0.1.

The gauge for unfilled orders improved to -6.7 from -9.2, while the delivery time index was also up, at -7.6, from -9.2 in February. The inventories index deteriorated to -1.9 in March from 6.4 a month earlier.

The index for future business conditions was down 12 points to 2.9, suggesting that firms do not expect activity to improve much over the next six months.