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VIRUS-EPIDEMIC-US-ECONOMY-INDICATOR-MANUFACTURING
New York manufacturing index down 34 points, lowest since 2009: Fed
WASHINGTON, March 16, 2020 (BSS/AFP) – As the coronavirus pandemic spread to the US, manufacturing activity in New York state fell to its lowest level since 2009, according to the New York Federal Reserve Bank’s monthly industry survey.
And the outlook for the months ahead also collapsed to a level not seen since the last recession, according to the Empire State manufacturing survey.
The manufacturing index plunged 34 points to -21.5 in March, the biggest point drop and lowest level since the year after the global financial crisis erupted, according to the statement.
In addition, “Firms no longer expect general business conditions to be better over the next six months.”
The index for future business conditions declined 22 points to 1.2, also the lowest level since 2009, the New York Fed survey showed.
The survey of about 200 manufacturing executives was conducted from March 2-10, just when closures of businesses, major sports leagues and entertainment were rippling through the US economy, and before the government had made taken any action to provide emergency spending to cushion the blow.
It is one of many regional business surveys, but the first to show a massive hit from the COVID-19 outbreak.
While the Empire survey showed shipments slowing only slightly, the new orders index plunged 31 points to -9.3.
And while employment fell modestly, the average work week dropped to -10.6 from -1.0, meaning employees are not working as much.
BSS/AFP/MMA/2053HRS