A Key Manufacturing Gauge Sees a Massive Decline

June 20, 2019

Manufacturers in the northeast expect the coming months to be hard. The Empire State Manufacturing Index, a closely watched measure of manufacturing in the New York area, has fallen to its lowest level in years. The index plummeted more than 26 points, falling from 17.8 in May to -8.6 reading for June. This is the biggest single-month drop since 2001. The index is based on business expectations, which have quickly turned pessimistic as the trade war has escalated. Expectations for new orders, employment, prices, and future shipments all suffered. The capital expenditures index, which tracks business investments, also saw a steep decline.

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