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A Federal Reserve measure of manufacturing in New York state cooled more than expected in September as capital-spending expectations fell to the lowest since 2016, adding to signs the U.S. factory slump is deepening.
The Empire State index, a survey of factories the state, fell to 2 from 4.8 as readings for new orders and shipments deteriorated, according to New York Fed data released Monday. The measure of capital spending expected six months ahead plunged the most in three years, to 4.6 from 23.2.
The regional snapshot follows other gauges of American manufacturing that have shown growing weakness amid trade tensions with China and slowing global economic growth. The Institute for Supply Management’s purchasing managers index contracted in August for the first time since 2016 as the gauge of new orders dropped to a seven-year low.
The report comes two days before Fed policy makers are expected to make a second-straight interest rate cut as they seek to protect the longest-ever U.S. economic expansion.
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