(RTTNews) - After seeing some growth in the previous month, business activity in the New York state manufacturing sector has shown a notable contraction in the month of September, according to a report released by the Federal Reserve Bank of New York on Monday.

The report showed that the index of activity in the sector fell to a negative 7.4 in September from a positive 2.8 in August, with a negative reading indicating a contraction in the sector. Economists had expected the index to edge down to a positive 1.4.

The New York Fed noted that approximately 30 percent of those surveyed said that conditions had worsened in September, while 22 percent said that conditions had improved.

Nonetheless, new orders and shipments experienced growth after contracting in the previous month. The new orders index jumped to a positive 4.4 in September from a negative 2.2 in August, while the shipments index edged up to a positive 0.6 from a negative 0.9.

The report also showed a contraction in inventories, with the inventories index slipping to a negative 2.3 in September from a positive 5.6 in August.

Employment also contracted in the month of September, marking the third consecutive month of weakness. The number of employees index edged down to a negative 4.6 in September from a negative 4.5 in August.

The New York Fed also said that price retreated notably, as the prices paid index fell to 44.8 in September from 65.2 in August, while the prices received index slipped to 24.1 from 32.6.

At the same time, the report showed a continued improvement in the outlook for the next six months, with the future general business conditions index climbing to 43.1 in September from 34.6 in the previous month.

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Posted in Categories: Economy, Forex, Releases, USA.

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