While analysts expected a modest decline in the Empire Manufacturing survey (from 17.2 to 15.0), the soft sentiment signal tumbled to just 3.7, suggesting the exuberant rebound from the depths of lockdown is over...
The drop was driven by a decline in new orders as it appears the restocking pent-up demand moves are over.
Nearly 34% of respondents said that business conditions are improving, while about 30% said activity was declining. The bank’s gauge of new orders fell to minus 1.7 from 13.9 and the shipments index dropped to 6.7 from 18.5.
And finally, we note that optimism among New York manufacturers about economic conditions over the next six months cooled with 'hope' sliding to 34.3 from 38.4.