The report from the New York Federal Reserve showed on Tuesday that manufacturing activity in the New York region expanded modestly in early October.

According to the survey, NY Fed Empire State manufacturing index fell from 17.0 in September to 10.5 in October, pointing to a slower pace of growth than in September.

Economists had expected the index to come in at 15.0.

Anything below zero signals contraction.

According to the report, the new orders index increased five points to 12.3, and the shipments index rose four points to 17.8, indicating ongoing gains in orders and shipments. The employment index moved up five points to 7.2, indicating that employment levels grew. Meanwhile, delivery times were little changed, while unfilled orders and inventories fell. On the price front, the prices paid index was little changed at 27.8, a sign that input prices grew at the same pace as last month, while the prices received index held fairly steady at 5.3, indicating a small advance in selling prices for a second consecutive month.