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Bloomberg News / Landov
Numbers: The index of market conditions in the Empire State fell 2.8 points to 2 in September, the New York Fed said Monday. Economists expected little change and a reading of 4.9, according to a study by Econoday.
Any reading above zero indicates an improvement in conditions.
What happened: The details of the report were weak. The new orders index fell 3.2 points to 3.5 in September. The index of shipments dropped 3.5 points to 5.8, its lowest level in nearly three years. The unfilled orders index remained negative for the fourth consecutive month. The employment index was a positive point, bouncing out of negative territory.
Big picture: The weakness of the manufacturing industry is one of the main reasons why the Federal Reserve should lower its benchmark interest rate for the second consecutive meeting later this week. Trade tensions, global weakness and a strong dollar have combined to hit the factory sector hard. The Empire State Index is the first in a series of regional manufacturing readings that give economists an idea of national trends. The national index of ISM factories, closely watched, dropped to 49.1 in August, a sign of contraction in activity and the lowest level since January 2016.
Lily: Three things to watch as the Fed meets on interest rates
Market reaction: The Dow Jones Industrial Average
DJIA, + 0.14%
should pull out after the weekend attack against oil production from Saudi Arabia.
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