Business activity in New York state suffered a severe and unexpected crash in August, a survey released Monday by the Federal Reserve Bank of New York showed.
The New York Fed’s Empire State Manufacturing Survey index of general business conditions plunged 42.4 points to negative 31.3.
This is the second largest monthly decline on record and among the lowest levels in the survey’s history. Only March and April of 2020 and February and March of 2009 were worse.
Economists had expected the index to dip to 5 from 11 in July.
The index for new orders dropped 35.8 points to negative 29.6, the lowest reading for this gauge outside of the lockdown period of March through May 2020. The index for shipments fell 49.4 points to negative 24.1. This indicates a sharp decline in both orders and shipments.