The New York Federal Reserve released its survey on Monday. The NY Fed Empire State manufacturing index declined to 6.90 in March from 7.78 in February, missing expectations for a rise to 8.1.

The decline was driven by a drop in new orders. The new orders index plunged to -2.39 in March from 1.22 in February. It was the lowest level since November 2013.

"Business activity continued to expand at a modest pace for New York manufacturers," the report said.

The price-paid index declined to 12.37 in March from 14.61 in February.

The index for the number of employees rose to 18.56 in March from 10.11 last month. It was the highest level since May 2014.

The general business conditions expectations index for the next six months climbed to 30.72 in March from 25.58 in February.