New York manufacturing activity plummets in August

By Ovunc Kutlu

ISTANBUL (AA) - The New York Fed manufacturing index plummeted in August and came much lower than market estimates, according to a report released on Tuesday.

The Empire State Manufacturing Index, which measures the level of general business conditions in the state of New York, dove a massive 20 points to -19 this month, according to the Federal Reserve Bank of New York.

The market expectation for the index was to come in at -1, while the index stood at 1.1 in July.

This is the first time the index has had a negative reading since May.

Readings above zero indicate improving conditions, while those below show worsening conditions.

"New orders and shipments fell significantly," the New York Fed said in a statement. "Delivery times were steady, and inventories moved lower."

"Labor market indicators pointed to steady employment levels but a shorter average workweek," it added.