In a significant downturn, New York Fed Empire State Business Conditions Index plummeted to -31.8 in May, a drastic drop of -42.6 points from its April reading of 10.8. This disappointing figure significantly underperforms market expectations of -1.9, and any reading below zero signals deteriorating conditions.
This precipitous drop comes just a month after the index defied expectations with a 35.4 point surge to 10.8 in April. The recent plunge not only eradicates last month’s gains but also heightens concerns about a potential recession.
In parallel with the overall index, new orders sub-index fell a whopping -53.1 points to -28 in May, effectively erasing the sharp 46.7 point increase seen in April. Additionally, shipments index witnessed a substantial decline, falling -40.3 points to -16.4, negating the 37.3 point gain from the previous month.
Interestingly, amid this overall downturn, the six-month expectations measure managed to tick up slightly, gaining 3.2 points to reach 9.8.
