Manufacturing In New York Contracts In October, Fed Says

An index that tracks manufacturing in the state of New York showed the second contraction in three months.

The general business conditions index fell to -4.6 from a positive reading of 1.9 in September and -19 in August, according to a survey conducted Oct. 2-10 by the Federal Reserve Bank of New York. The index has showed negative results in six out of the 10 months of this year.

The decline in October reflects a drop in new orders. But companies "remained relatively optimistic about the six-month outlook," the N.Y. Fed said.

The survey is sent monthly to about 200 executives of the manufacturing industry in the state of New York. A reading above zero signals growth.

Upcoming Data

The most expected economic data this week is the retail sales report for the month of September, which will be released Tuesday. In August, sales surprised with a 0.6% monthly gain. The numbers will show how much consumers may help sustain economic activity.

Markets will also be closely watching public appearances of Fed officials before they enter a pre-meeting blackout next week. Fed Chair Jerome Powell speaks Thursday about economic outlook at an event in New York. The next Fed monetary policy meeting decision is Nov. 1.