New York Empire Manufacturing Index unexpectedly contracted in May as factories remained short of orders and sales slowed down, Bloomberg reported.
The Federal Reserve Bank of New York’s general index dropped to -1.43 this month from 3.05 during April. Values below zero stress on contraction in New York, northern New Jersey and southern Connecticut.
Bloomberg stated, that industrial orders were restrained by global markets difficulties and less inventory building by companies and as a result manufacturing process stumbled. On the other hand, housing sector and auto sales could turn out to be refreshing for the whole industry.
It is expected that factory managements estimates to remain less optimistic for future development. The indicator to measure the outlook in the future six months decreased to 25.5 during May, while it was 32 during the previous month. Additionally, the indicator for current new orders dropped to -1.2 during May, compared to 2.2 in the preceding month. Shipments benchmark reached 0, as it was 0.8 during the previous month, Bloomberg imparted.