By Xavier Fontdegloria

Manufacturing activity in New York expanded in October at a slower pace than the previous month amid persisting supply-chain disruptions, according to a survey from the Federal Reserve Bank of New York released Friday.

The Empire State Manufacturing Survey's general business conditions index eased to 19.8 in October from 34.3 in September, missing the 26.5 level expected by economists polled by The Wall Street Journal. Any reading above zero suggests that the region's manufacturing sector is growing.

In October, 39% of the firms polled in the survey said conditions had improved in the month, while nearly 20% reported that conditions had worsened compared with September.

Demand for goods softened. The new orders index fell about nine points to 24.3, and the shipments index declined sharply to 8.9. The unfilled orders index was broadly stable at 18.5.

Supply-chain disruptions were widespread, according to the respondents. The delivery times index climbed to 38.0, a new-record high, while the inventories index signaled that respondents' inventories levels increased modestly.

Labor market indicators suggested that both employment and hours worked increased, albeit at a slower pace than the previous month. The index for number of employees edged down slightly to 17.1, and the average workweek index fell to a reading of 15.3.

Inflation pressures remained high. The prices paid index rose three points to 78.7 and the prices received index fell about four points to 43.5, with both indexes holding near record-highs, the New York Fed said.

Firms in the region remained optimistic that conditions would improve over the next six months.

The index for future business conditions rose about four points to 52.0, and the indexes for future new orders and shipments signaled that both are expected to increase strongly in the months ahead, the report said.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

(END) Dow Jones Newswires

October 15, 2021 08:44 ET (12:44 GMT)