© Reuters. A U.S. flag is seen on the hard hat of a worker in the factory at IceStone, a manufacturer of recycled glass countertops and surfaces, in New York City, New York, U.S., June 3, 2021. REUTERS/Andrew Kelly/File Photo
(Corrects first paragraph to show activity slumped for the third time this year and not second time)
WASHINGTON (Reuters) -Factory activity in New York state slumped in May for the third time this year amid a collapse in new orders and shipments, and manufacturers were slightly upbeat about business conditions over the next six months.
The New York Federal Reserve said on Monday its “Empire State” index on current business conditions tumbled 36.2 points to a reading of -11.6 this month. A reading below zero signals a contraction in the New York manufacturing sector.
Manufacturers reported a sharp decline in orders. The survey’s new orders index collapsed 33.9 points to a reading of -8.8. There were also massive decreases in shipments and unfilled orders measures. Factories continued to wait long periods for supplies to be delivered, keeping prices elevated.
Manufacturers were mildly optimistic about the outlook for the next six months. The index for future business conditions rose 2.8 points to a reading of 18.0. The capital expenditures index fell 6.4 points to 25.4.
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