ECONODAY: General conditions so far in March, at an index of 6.90, remain modestly favorable in the New York State manufacturing sector but order data have been very soft both this quarter and going back to the fourth quarter. New orders are in contraction in the March report, at minus 2.39 which is the second negative reading of the last 6 months, a stretch where this reading has averaged a pitiful plus 2.24. Backlog orders, which are always weak in this report, have been in severe contraction, at minus 13.40 in the March report for a 6-month average of minus 10.75.
Weak orders are not a plus for employment though the March employment index did accelerate substantially, to 18.56 vs 10.11 in February for the best reading since May last year. Yet how long this can hold is in doubt especially given the slowing the last 2 months in the general 6-month outlook. The outlook did rise more than 5 points to 30.72 but the last 2 readings are the weakest since second quarter 2013...
