The report from the New York Federal Reserve showed on Monday that manufacturing activity in the New York region slipped in early August.

According to the survey, NY Fed Empire State manufacturing index fell from 17.2 in July to 3.7 in August.

Economists had expected the index to come in at 15.0.

Anything below zero signals contraction.

According to the report, new orders index dropped sixteen points to -1.7, indicating that orders leveled off, and the shipments index fell twelve points to 6.7, pointing to a modest advance in shipments. Unfilled orders and inventories also declined. Meanwhile, employment inched higher and delivery times were steady. On the price front, input prices increased at about the same pace as last month, while selling prices increased for the first time in several months.