New York Fed Factory Index Collapses in April to Record Low

(Bloomberg) -- Manufacturing in New York State shrank in April at the fastest pace on record, highlighting the severe impact of the economic stoppage designed to combat the pandemic.

The Federal Reserve Bank of New York’s general business conditions index tumbled 56.7 points to minus 78.2, the lowest in records back to 2001, a report out Wednesday showed. The bank’s measures of orders, shipments, employment and the average workweek all declined at a record pace this month amid dismal demand. Manufacturing has slowed significantly as the coronavirus disrupted global supply chains and caused sharp cutbacks in demand.

Manufacturers in New York expect only a slight improvement in conditions over the next six months. The regional Fed bank’s future index rose 5.8 points to 7, though expectations for orders and sales declined.

The survey responses were collected between April 2 and April 10. Readings below zero indicate contraction, and the median projection in a Bloomberg survey of economists called for the gauge to decline to minus 35. The Empire State report is the first of several regional Fed manufacturing indexes to be released this month.

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