The numbers: The New York Fed’s Empire State business conditions index, a gauge of manufacturing activity in the state, fell 7.6 points to negative 9.1 in October, the regional Fed bank said Monday.
This is the third straight negative reading.
Economists had expected a reading of negative 5.0, according to a survey by The Wall Street Journal.
Any reading below zero indicates deteriorating conditions.
Key details: The index for new orders was unchanged at 3.7 in October. The shipments index dropped by a sharp 19.9 points to negative 24.1.
Unfilled orders rose 3.8 points to negative 3.7.
Labor market conditions had a modest improvement.
The prices-paid index rose 9 points to 48.6 after a sharp decline over the past three months.
Firms do not expect conditions to improve over the next three months.
Big picture: The U.S. factory sector is under pressure from falling orders, thinning backlogs and right-sizing of inventories, according to Richard Moody, chief economist at Regions Financial Corp.
The Institute for Supply Management’s closely watched national manufacturing index slipped to 50.9 in September, the lowest reading since May 2020.
Market reaction: Stocks
were set to open higher on Monday with the yield on the 10-year Treasury note
slipped to 3.92%.