The September Empire State Index of General Business Conditions in New York's manufacturing industries dipped to 16.97 from 23.04 in August.

The new orders component fell sharply following its earlier improvement to 13.10 but the shipments index rose to the highest level since February. The employment index also rose to its highest since January while the prices paid index surged.

Like the Philadelphia Fed Index of General Business Conditions, the Empire State Business Conditions Index reflects answers to an independent survey question; it is not a weighted combination of the components.

The index of expectations for business conditions in six months fell sharply although expectations for future capital spending rose.

The Empire State Manufacturing Survey is a monthly survey of manufacturers in New York State conducted by the Federal Reserve Bank of New York. Participants from across the state in a variety of industries respond to a questionnaire and report the change in a variety of indicators from the previous month. Respondents also state the likely direction of these same indicators six months ahead. April 2002 is the first report, although survey data date back to July 2001.

For more on the Empire State Manufacturing Survey, including methodologies and the latest report, click here.