According to data released Monday, factory activity in New York State declined more sharply than expected this month. Orders and shipments dropped the most significantly, Bloomberg reported.
The Federal Reserve Bank of New York’s general business conditions index fell 7 points to -16, marking the fourth consecutive monthly decline. Economists surveyed by Bloomberg had predicted a smaller drop to -6. Notably, future expectations for the index surged, jumping 23 points to reach a five-year high.
Analysts noted the data was collected between June 2 and June 9, shortly before US-China trade talks on reducing tariffs began. The two nations reached an agreement after a two-day meeting in the UK.
Meanwhile, both production material prices and manufacturer cost expectations declined. Factories face pressure from rising expenses and uncertainty over US trade policy, Bloomberg wrote.