New York State Manufacturing Activity Proves Weaker Again -- New York Fed

Published: 2025-05-15 08:45:12 ET S

Published on 05/15/2025 at 08:45

By Joshua Kirby

Factory activity in New York State continues to slow amid signs of a weaker labor market and rising prices, according to a monthly survey.

The Federal Reserve Bank of New York said Thursday that its statewide manufacturing index declined slightly to minus 9.2 this month from minus 8.1 in April, a change in line with economists' expectations.

There were signs of a rebound in demand as new orders turned positive from a month earlier, and shipments also increased slightly.

But firms in the state continue to expect conditions to worsen in the months ahead, the survey showed. Input prices are meanwhile increasing, and reached their highest level in more than two years, a worrying sign for the Fed as it battles to bring inflation lower. The index's gauge of employment meanwhile worsened.

"Business activity continued to decline modestly in New York State in May. New orders and shipments increased after a decline last month, while supply availability worsened," said Richard Deitz of the New York Fed.

Write to Joshua Kirby at [email protected]; @joshualeokirby

(END) Dow Jones Newswires

05-15-25 0844ET