Manufacturing in the New York region expanded in June at the slowest pace in seven months as orders and sales cooled.
The Federal Reserve Bank of New York’s general economic index dropped to 2.3 this month, less than the lowest forecast of economists surveyed by Bloomberg News and down from 17.1 in May. Readings greater than zero signal expansion in the so- called Empire State Index, which covers New York, northern New Jersey and southern Connecticut. The last negative reading was in October.
A pullback by American consumers over the past two months combined with a global slowdown means U.S. factories, one of the bright spots of the recovery, may continue to receive fewer orders and reduce production. Fed policy makers meet next week to determine if the world’s largest economy needs further stimulus to boost growth and reduce unemployment.