Business activity in New York state crashed in August, a Fed poll revealed Monday.
The New York Fed's Empire State Manufacturing Survey fell 42.4 points to negative 31.3.
This is the second-largest monthly drop in survey history. Only 2020 and 2009 were worse.
Economists predicted a drop from 11 to 5 in July.
The new orders index fell 35.8 points to minus 29.6, the lowest result outside of March-May 2020. Shipments declined 49.4 points to -24.1. Both orders and shipments are down.
Unfilled orders fell 12.7 points to -7.5, the third fall. Inventory index declined to 6.4, indicating delivery times increased.
Given the drop in demand, delivery times aren't surprising. It's been two years since delivery times didn't worsen.
The prices paid index fell but remained high, indicating input price slowdown. The prices received index maintained unchanged, indicating no letup in inflationary pressures despite the demand slump.
The employment index declined 11 points to 7.4, indicating a minor gain. The workweek index fell, indicating fewer hours.
The future business conditions index was 2.1, indicating manufacturers' pessimism about the next six months. The New York Fed plans modest increases in capital and technology spending. Employment and delivery times should improve. Positive but low six-month new orders and shipments indexes.
The New York Fed's study measures U.S. manufacturing conditions. Philadelphia Fed index due Thursday. Economists predicted the Philly Fed index would improve from minus 12.3 in July to negative 5 in August before the New York Fed's collapse.
The preceding is a summary of an article that originally appeared on BREITBART.
