Manufacturing in the New York region unexpectedly contracts for a third straight month

(Bloomberg) Manufacturing in the New York region unexpectedly contracted for a third straight month in August as orders and inventories dropped, a sign the industry that has led the economic recovery is at risk of stumbling.

The Federal Reserve Bank of New York’s general economic index fell to minus 7.7 from minus 3.8 in July, a report showed today. The median forecast in a Bloomberg survey called for an index of zero, the dividing line between expansion and contraction. The so-called Empire State Index covers New York, northern New Jersey and southern Connecticut.

Weaker demand from consumers and businesses, coupled with slowing growth in emerging economies and Europe, means factories are ratcheting down production. The Fed, in its policy meeting last week, said growth this year had been “considerably slower” than forecast and announced it would keep its benchmark lending rate near zero at least though mid-2013 to spur growth.

“There are downside risks ahead for manufacturing particularly given that U.S. consumer spending is going to be weaker than a lot of people have been thinking, including the Fed,” said James Shugg, a senior economist at Westpac Banking Corp. in London. .......(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-15/new-york-area-manufacturing-shrinks-for-third-month-as-inventories-decline.html

:shrug:

nt

have no clue what they are talking about anymore.

have no clue what they are talking about anymore.

No surprise from the terminally comatose