A report released by the Federal Reserve Bank of New York on Monday showed a downturn in regional manufacturing activity in the month of October.
The New York Fed said its general business conditions index fell to a negative 4.6 in October from a positive 1.9 in September, with a negative reading indicating a contraction in activity. Economists had expected the index to drop to a negative 7.0.
Twenty-four percent of respondents reported that conditions had improved over the month, while twenty-nine percent reported that conditions had worsened, the New York Fed said.
Looking ahead, the index for future business conditions slipped to 23.1 in October from 26.3 in September, suggesting that firms remain relatively optimistic about future conditions.