New York Industry Continues to Slide Amid Sluggish Demand — NY Fed

By Joshua Kirby

Factory activity in New York State recovered a little this month but remained weak as firms set out a gloomier view for the coming months, according to a New York Federal Reserve survey published Monday.

The survey's main index gauging general business conditions in the state gained more than six points to stand at minus 14.3, falling somewhat short of economists' hopes for a more punchy recovery, according to a poll by The Wall Street Journal.

"Manufacturing activity continued to contract in New York State in April, and employment continued to decline," said Richard Deitz, economic research adviser at the New York Fed.

"Optimism about the outlook for future business conditions remained subdued," Deitz said.

Inventories and delivery times both improved on the month but there was little sign of a major pick-up in demand, with new orders largely unchanged and shipments declining. Gauges of employment in the state also remained weak, with average work-weeks slipping back and employee numbers falling only a little less sharply compared with a month earlier.

Looking ahead, firms were less optimistic about future business conditions. Only 37% expect conditions to improve in the next six months, a smaller share than a month earlier. Expectations for employment and capital outlay also weakened.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

April 15, 2024 08:45 ET (12:45 GMT)

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