New York Factory Activity Drops Sharply in March, Reports NY Fed
Factory activity in New York State fell sharply in March, marking the biggest drop in nearly two years, according to a survey by the Federal Reserve Bank of New York. The report, cited by Reuters, shows that the Empire State manufacturing index plunged to -20.0, down from +5.7 in February. This is the largest decline since May 2023 and worse than all 26 economists’ predictions in a Reuters poll, which had expected a smaller drop to -1.50.
The survey revealed that new orders and shipments decreased, while the cost of materials rose at the fastest pace in over two years. Prices for finished goods also increased, and optimism about the future dropped for the second month in a row.
This decline is seen as another sign that the U.S. economy may be slowing down. The factory sector is struggling to adapt to President Donald Trump’s tariffs on imported goods, which have expanded in recent months. On Monday, Trump repeated his threat to impose more tariffs in early April and confirmed there would be no exemptions for the recent steel and aluminum tariffs.
The report highlights the challenges facing manufacturers as they deal with higher costs and weaker demand. It also raises concerns about the broader impact of trade policies on the economy.
Credit: This story is based on reporting by Reuters.