WASHINGTON – New York manufacturers are growing at the slowest pace in six months as new orders shrink and shipments barely rise.
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The Federal Reserve Bank of New York says that its Empire State Manufacturing index dropped to 6.2 in October, down sharply from a five-year high of 27.5 in September. Any figure above zero indicates growth. October's reading is the lowest since April.
Factories are still adding workers. A measure of hiring rose seven points to 10.2. And a gauge of prices paid by manufacturers for raw materials fell, a sign that inflation remains tame.
Despite the slowdown in October, New York's manufacturers have a mostly optimistic outlook. A measure of expected business conditions in six months fell but remained healthy at 41.7, down from 46.7.