September 15, 2005 11:00 AM, EDT

New York's Manufacturing Index Declines in September

Click here to write a Letter to the Editor.

anufacturing growth in New York state declined this month as costs rose, according to a monthly survey by the Federal Reserve Bank of New York released Thursday.

The Fed’s so-called empire state index fell to 17 from 23 the previous month. Readings above zero indicated expansion.

Manufacturing in New York is coming off the strongest levels of the year, as energy rising prices may be inhibiting orders.

Economists’ had forecast the index to fall to 15, 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 until May's reading the survey had shown growth since May 2003.

The gauge of prices paid for materials jumped to 53.4 this month, the highest since March, from 29 in August.

A gauge of prices manufacturers received rose to 10.2 from negative 1 in August., while an index of prices manufacturers expect to pay six months from now soared to a record 75 from 47 a month earlier.