New York manufacturing activity slows sharply in July

Manufacturing in New York state grew for a second month in July but at a much slower pace, as new orders and shipments both slipped.

The Federal Reserve Bank of New York says its Empire State manufacturing index dropped to 9.8 from 19.8 in June. Any reading above zero signals expansion.

July's drop comes after the index reached a two-year high in June. Still, the reading is at a mostly healthy level. While the index measures sentiment among New York firms, it is closely followed by economists because it provides an early read on factory output nationwide.

A measure of new orders dropped to 13.3 from 18.1, while a gauge of shipments dropped to 10.5 from 22.3. Hiring also slowed sharply.