October’s report on Manufacturing in the New York region took another turn for the worse this morning. While economists were expecting the headline reading of the Empire Manufacturing report to rebound back into positive territory from last month’s reading of -2.0, the actual reading declined to -6.8. This was the third straight monthly reading below zero, the fourth straight weaker than expected reading, and the weakest overall report since May.
Not everything was bad about the October report, though. The internals of the report were actually more positive than the headline. As shown in the table below, besides the headline reading, Delivery Time was the only component of the current conditions part of the report which deteriorated in October. As far as expectations are concerned, manufacturers’ expectations for General Business conditions were more positive in October than September with Prices Paid showing the only decline. Additionally, plans for CapEx rose to their highest level since April.