Business activity fell sharply in New York State, according to firms responding to the May 2023 Empire State Manufacturing Survey conducted by the Federal Reserve Bank of New York. It was released this morning.
The headline general business conditions index dropped 43.0 points to -31.8. New orders and shipments plunged after rising significantly last month. Delivery times shortened somewhat, and inventories contracted. Both employment and hours worked edged lower for a fourth consecutive month. Prices increased at about the same pace as last month. Capital spending plans turned sluggish. Looking ahead, businesses expect some improvement in conditions over the next six months.
Does this confirm that the economy is falling into a recession, as many economists have been predicting?