02:35 PM EDT, 10/15/2024 (MT Newswires) -- New York manufacturing activity fell more than projected this month in a return to contraction territory as orders and shipments plummeted, the Federal Reserve Bank of New York said Tuesday.

The Empire State Manufacturing Survey's general business conditions index dropped more than 23 points to minus 11.9 in October. The consensus was for a smaller month-to-month decline to 3.6, according to a survey compiled by Bloomberg.

"Manufacturing activity contracted modestly in New York State in October, with firms reporting that new orders declined," New York Fed Economic Research Adviser Richard Deitz said. "Despite this contraction, employment expanded for the first time in a year, though by a small degree, and optimism about the outlook grew strongly."

The new orders index tumbled about 20 points to minus 10.2 and shipments decreased nearly 21 points to minus 2.7. The employment gauge rebounded nearly 10 points to 4.1, its first positive reading in a year, according to the Fed branch.

The raw material cost index climbed to 29 in October from 23.2 the month prior, while the selling prices measure increased to 10.8 from 7.4, the survey showed.

Six months out, the index for general business conditions improved 8.1 points to 38.7 this month, a multi-year high, according to the New York Fed. The future new orders index dipped 1.5 points to 38.4, while the shipments gauge edged up by 1.2 points to 37.6, according to the survey.

The outlook for employment growth rose to 19.5 from 17.3 month to month.