New York Fed Index Slips To -3.2, Jobless Claims Edge Up To 371,000
Thursday May 15, 2008 09:04:00 EDT

(RTTNews) - After seeing a modest expansion in the previous month, manufacturing activity in New York state contracted once again in the month of May, according to a report released by the Federal Reserve Bank of New York on Thursday.

The report showed that the general business conditions index fell to a negative 3.2 in May from a positive 0.6 in April, with a negative reading indicating a contraction in the manufacturing sector. Economists had expected the index to come in at 0.0.

The New York Fed noted that roughly 23 percent of respondents reported that conditions had improved over the past month, while 27 percent reported that conditions had deteriorated.

The unexpected contraction in the sector was partly due to weakness in new orders, with the new or (continued...)