By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — Manufacturers in the New York region said business activity had weakened slightly in early July, according to a report released Friday by the New York Federal Reserve Bank.
The Empire State index remained below zero for the second straight month, rising only to negative 3.8 in July from negative 7.8 in June.
The index has fallen dramatically the past three months after hitting a 12-month high of 21.7 in April.
Readings below zero indicate more firms said business was worsening than said it was improving.
In July, 26% of firms said business got worse. At the same time, 23% said business improved.
The small increase in the index was well below expectations. Economists surveyed by MarketWatch expected the headline index to rebound to 5.0 in July.
The new-orders index fell to negative 5.5 in July from negative 3.6 in the prior month.
Executives at the manufacturing firms were more hopeful about a turnaround. The future-business index rose almost 10 points to 32.2. The future-employment index rose to 2.2 in July from negative territory in the prior month.
in July, the prices-paid index fell to 43.3 from 56.1 in June. The index — the difference between those saying prices are higher and those saying lower — has fallen a cumulative 27 points in the past two months and is now at its lowest level since January.
The prices-received index also declined, to 5.6 in July from 11.2 in June.
In a separate report, the Labor Department said the consumer-price index fell 0.2% in June while the core rate, which is being closely watched by economists because of recent increases, again surprised on the upside with a 0.3% increase.
Greg Robb is a senior reporter for MarketWatch in Washington.
