(RTTNews) - Wednesday morning, the Federal Reserve Bank of New York released its report on business activity in the New York manufacturing sector in the month of October, showing a significant deterioration in business conditions.

The report showed that the general business conditions index fell to a record low of negative 24.6 in October from a negative 7.4 in September, with a negative reading indicating a contraction in the sector. Economists had expected the index to come in at a negative 10.0.

A steep drop in new orders contributed to the acceleration in the pace of contraction, with the new orders index falling to a record low of negative 20.5 in October from a positive 4.4 in September. Shipments also turned lower after seeing some growth in the previous month.

While the report showed a modest slowdown in the pace of contraction in employment, with the number of employees index coming in at a negative 3.7 in October compared to a negative 4.6 in September, the index remained negative for the fourth consecutive.

At the same time, the New York Fed said that the pace of price growth eased significantly. The prices paid index fell to 31.7 in October from 44.8 in September, while the prices received index fell to 20.7 from 24.1 in the previous month.

Looking ahead, the report showed that the future general business conditions index fell to 24.2 in October from 43.1 in September. The futures new orders index and the future shipments index both showed notable declines.

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

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