The New York Federal Reserve released its survey on Friday. The NY Fed Empire State manufacturing index dropped to -19.37 in January from -6.21 in December, missing expectations for an increase to -4.00. December's figure was revised down from -4.59.

A reading above zero indicates expansion, while a reading below zero indicates contraction.

"The January 2016 Empire State Manufacturing Survey indicates that business activity declined for New York manufacturers at the fastest pace since the Great Recession," the New York Federal Reserve said in its report.

The new orders index plunged to -23.54 in January from-6.18 in December, while the shipments index slid to -14.39 from 4.62.

The general business conditions expectations index for the next six months slid to 9.51 in January from 35.65 in December.

The price-paid index climbed to 16.00 in January from 4.04 in December.

The index for the number of employees rose to -13.00 in January from -16.16 in December.