Pointing to a slower pace of growth, the Federal Reserve Bank of New York released a report on Monday showing a much bigger than expected decrease by its index of regional manufacturing activity in the month of September.
The New York Fed said its general business conditions index fell to 19.0 in September from 25.6 in August, although a positive reading continues to indicate growth in regional manufacturing activity. The index had been expected to dip to 23.0.
The bigger than expected decrease by the headline index was partly due to a steep drop by the shipments index, which tumbled to 14.3 in September from 25.7 in August.
The new orders index also edged down to 16.5 in September from 17.1 in August, while the number of employees inched up to 13.3 from 13.1.
While the report also said the prices received index fell to 16.3 in September from 20.0 in August, the prices paid index rose to 46.3 from 45.2.
Looking ahead, the New York Fed said firms remain moderately optimistic about the six-month outlook but noted optimism in recent months has been more temperate than earlier this year.
The index for future business conditions pulled back to 30.3 in September after climbing to 34.8 in the previous month.
On Thursday, the Federal Reserve Bank of Philadelphia is scheduled to release its report on regional manufacturing activity in the month of September.
The Philly Fed Index is expected to rise to 15.0 in September after tumbling to 11.9 in August, with a positive reading indicating growth.