NY Area Factory Woes

The Federal Reserve Bank of New York reported its general economic index rose from minus 7.8 in June 2011 to minus 3.8 in in July 2011 -- better, but below analysts' estimate of plus 5. Scores above 0 indicate sales expansion, while those below 0 indicate contracting sales. The area encompasses covers New York, northern New Jersey, and southern Connecticut. Rising inventories and the summer slowdown of consumer spending are starting to show that any increase in manufacturing may hinge more on exports than domestic consumption.