New York manufacturing index dropped to record low

Manufacturing in New York contracted in February at the fastest pace on record, signaling the recession that began over a year ago is intensifying.

The Federal Reserve Bank of New York’s general economic index fell to minus 34.7, the lowest level since records began in 2001, from minus 22.2 percent in January, the bank said today. Readings below zero for the Empire State index signal manufacturing activity is shrinking.

A lack of credit and sliding sales in the U.S. and abroad are prompting companies from General Motors Corp. to Alcoa Inc. to trim production and slash jobs, according to a Feb. 17 Bloomberg report.

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