April N.Y. Manufacturing Index Falls to Two-Year Low

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anufacturing in New York state grew at the slowest pace in two years in April as orders fell, according to a monthly survey by the Federal Reserve Bank of New York released Friday.

The Empire State index dropped to 3.1 this month, from 20.2 in March. Economists’ had forecast a reading of 18, Bloomberg reported. In February 2004, the index reached a record high of 39.6.

Manufacturing is one of trucking’s largest and most important customers. Readings above zero indicate expansion, and the survey has shown growth since May 2003.

The 3.1 reading is close to zero, the dividing point between expansion and contraction, Bloomberg said. The index has been greater than zero every month since May 2003.

The survey’s new orders index fell to minus 0.2, also the lowest in two years, from 8.6. The index of New York manufacturers expecting to hire more workers over the next six months fell to 21.7 from 27.1.

he index of shipments fell to 0.3 from 21.9 and the index of inventories rose to minus 1.6 from negative 4.6.

The Empire State survey began in July 2001, when the U.S. economy was in a recession. The Buffalo branch of the New York Fed said it polls about 150 factories each month and typically receives 100 responses.