Business activity “grew only slightly in New York State,” the March Empire State Manufacturing Survey, released Friday by the Federal Reserve Bank of New York, suggested.
The general business conditions index dropped to 3.7 in March, its lowest reading since May 2017, from 8.8 in February.
Economists surveyed by IFR Markets had expected the index would be 10.0.
The index has been below 10 for three straight months, “suggesting that growth has remained quite a bit slower so far this year than it was for most of 2018,” the report said.
The report is in line with other indicators showing the economy is slowing, which would allow the Federal Open Market Committee to keep interest rates steady.
The split between those that felt that conditions Improved versus those who thought they worsened was a narrow 30%-25%.
The new orders index slipped to 3.0 from 7.5, while the shipments index decreased to 7.7 from 10.4, and unfilled orders reversed to positive 2.2 from negative 0.7, the Fed said.
The delivery time index declined to 1.4 from 5.0, while the inventories index climbed to zero from negative 1.4 in the prior survey. The prices paid index gained to 34.1 from 27.1, while the prices received index dropped to 18.1 from 22.9. The number of employees index grew to 13.8 from 4.1, while the average employee workweek index fell to negative 3.4 from positive 2.5, the Fed reported.
Looking six months into the future, the general business conditions index declined to 29.6 from 32.3 last month. The new orders index fell to 29.0 from 35.7, while the shipments index decreased to 27.7 from 35.1, and unfilled orders dipped to 5.8 from 6.4, the Fed said. The delivery time index rose to 6.5 from 4.3, while the inventories index remained at 1.4.
The prices paid index climbed to 40.6 from 37.1, while the prices received index fell to 23.9 from 30.7. The number of employees index dropped to 17.6 from 19.1, while the average employee workweek index slid to 10.1 from 16.4, the Fed reported. The capital expenditures index declined to 28.3 from 29.3. The technology spending index fell to 20.3 from 22.1.
