New York manufacturing activity has declined modestly in the month of April, the Federal Reserve Bank of New York revealed in a report released on Tuesday.
The New York Fed said its general business conditions index jumped to a negative 8.1 in April after plunging to a negative 20.0 in March, although a negative reading still indicates contraction. Economists had expected the index to rise to a negative 14.5.
The bigger than expected rebound by the headline index came as new orders and shipments decreased at slower rates compared to the previous month.
The new orders index climbed to a negative 8.8 in April from a negative 14.9 in March, while the shipments index rose to a negative 2.9 in April from a negative 8.5 in March.
The number of employees index also inched up to a negative 2.6 in April from a negative 4.1 in March, pointing to little change in employment levels.
The report also said the prices paid index increased to 50.8 in April from 44.9 in March, while the prices received index climbed to 28.7 in April from 22.4 in March.
Looking ahead, the New York Fed said firms expect conditions to worsen in the months ahead, with the index for future business activity plunging to a negative 7.4 in April from a positive 12.7 in March.