Bloomberg News/Landov
The numbers: The Empire State business conditions index fell 2.8 points to 2 in September, the New York Fed said Monday. Economists had expected little change and a reading of 4.9, according to a survey by Econoday.
Any reading above zero indicates improving conditions.
What happened: The details of the report were weak. The new orders index fell 3.2 points to 3.5 in September. The shipments index fell 3.5 points to 5.8, its lowest level in nearly three years. The unfilled-orders index remained negative for the fourth straight month. The employment index was one bright spot, rebounding out of negative territory.
Big picture: Weakness in manufacturing is one key reason the Federal Reserve is expected to cut its benchmark interest rate for the second straight meeting later this week. Trade tensions, global weakness and a strong dollar have combined to hit the factory sector hard. The Empire State Index is the first of several regional manufacturing readings that give economists a sense of national trends. The closely watched national ISM factory index slumped to 49.1 in August, a sign of contraction of activity and the lowest level since January 2016.
Read: 3 things to watch as Fed meets on interest rates
Market reaction: The Dow Jones Industrial Average
DJIA, +0.14%
was set to pull back after the weekend attack against Saudi Arabia oil production.
Source : MTV
