Manufacturing in New York fell sharply this month, but still had growth according to the New York Federal Reserve. The general business conditions index dropped to 2.3, well short of economists predictions of 13.
Employment also dropped slightly with the indexes for six month outlook fell to 23.1, its fifth straight monthly decline.
“This survey is very volatile month to month so we can’t extrapolate the state of the entire country’s manufacturing base from this one region but New York was one of the standouts in May that is now showing its vulnerability,” said Peter Boockvar, equity strategist at Miller Tabak in New York. “I’m sure we’ll see more weakness in other regions as the global economy continues to slow.”
Futures are off their highs following this news with Dow futures up 16 points, Nasdaq futures up 16.70 points and S&P 500 futures up 5.75 points.