11:10 AM EDT, 03/17/2025 (MT Newswires) -- New York manufacturing activity dropped into steeper-than-expected contraction territory this month as both orders and shipments turned negative, the Federal Reserve Bank of New York said Monday.

The Empire State Manufacturing Survey's general business conditions index plunged to minus 20 from 5.7 in February. The consensus was for a drop to minus 1.9, according to a survey compiled by Bloomberg.

"Manufacturing activity dropped significantly in New York State in March," New York Fed Economic Research Adviser Richard Deitz said in a statement.

New orders slid 26 points to minus 14.9, according to the Fed branch. The shipments measure declined to minus 8.5 from 14.2 the prior month.

The raw material cost and the selling prices measures climbed for a third consecutive month, according to the report. Input prices advanced at the fastest pace in more than two years, and are anticipated to remain "significant" over the next six months, the report said.

The employment index remained in contraction territory at minus 4.1 in March, the survey showed.

Six months out, the index for business activity dipped nearly 10 points to 12.7 in March following last month's 15-point drop. The future new orders index fell, while the shipments gauge was largely unchanged, the survey showed.

"Supply availability is expected to contract and firms continued to grow less optimistic about the future business outlook," Deitz said.