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New York state factory activity slumps in May -Breaking

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© Reuters. An American flag can be seen on the hard hat at IceStone in New York City. The factory is a manufacturer of recycled-glass countertops and surface surfaces. It was taken in New York City on June 3, 2021. REUTERS/Andrew Kelly/File photo

WASHINGTON, (Reuters) – Factory activity in New York State slumped in May due to a decline in new orders. Manufacturers were somewhat optimistic about the future of business in the six months ahead.

On Monday, the New York Federal Reserve reported that its “Empire State” index of current business conditions fell 36.2 points to an reading of -11.6. Any reading lower than zero indicates a contraction of the New York manufacturing industry.

The manufacturers reported a dramatic drop in order volume. According to the survey, the new orders index fell by 33.9 points to reach a reading of 8.8. The survey also saw a dramatic drop in the number of shipments and measures to fill unfulfilled orders. The long wait times for supply from factories kept prices high.

Manufacturers are mildly optimistic regarding the future outlook over the next six month. Future business conditions index rose by 2.8 points to an 18.0 reading. Capital expenditure index dropped 6.4 points to 25,4.

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