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The numbers: The New York Fed’s Empire State business conditions index plunged a record 34.4 points to -21.5 in March, the regional Fed bank said Monday. Economists had expected a reading of 4.8, according to a survey by Econoday. This is the lowest level since the financial crisis in 2009.
What happened: The new-orders index fell 31.4 points to -9.3 in March. Shipments fell 20.6 points to -1.7. Labor market indicators also weakened. Optimism about the six-month outlook fell sharply.
Big picture: This is one of the very first readings of the coronavirus outbreak’s impact on the economy and the results are not pretty. The worst seems yet to come. Fed Chairman Jerome Powell said Sunday that he expects negative GDP growth in the second quarter.
Market reaction: A major rate cut by the Federal Reserve has failed to stemmed pessimism in financial markets. Stock market futures remained limit down. On Friday, the Dow Jones Industrial Average DJIA, +9.36% soared 1,985 points.
