The September Empire State Manufacturing Index drastically missed expectations, plunging 13 points to a headline reading of 7.6.
The sudden drop, published at 8:30 a.m. EDT by the Federal Reserve Bank of New York, indicates that business activity in New York state is now expanding at a significantly slower pace. Economists had broadly projected the index to moderate gently to 14.1 from August's robust multi-year high of 20.6.
🔎 Key Internal Metrics
- Supply Chain Red Flags: While new orders edged up slightly, delivery times lengthened substantially and supply chain availability actively worsened across the region.
- Rising Input Costs: Factories reported that the pace of both input expenses and final selling price increases accelerated from already elevated levels, reflecting the bite of higher energy and operational costs.
- Steady Hiring Activity: On a positive note, employment continued to expand at a solid pace, and the average employee workweek rose considerably.
This weaker-than-expected data injects fresh growth concerns into the market just as the Federal Reserve officially opens its two-day interest rate policy meeting today.
Comment below if you would like me to map out how this cooling manufacturing data and rising cost pressure might impact the Fed's interest rate decision tomorrow, or should we look at how the broader stock market is reacting to the news?
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