New York economy declining

Federal Reserve index of manufacturers at its lowest level since it began 7 years ago.

Economic conditions in New York continued to deteriorate in November, with a survey of manufacturers in the region released Monday coming in at its weakest level in its seven-year history.

The general business conditions index, a part of the Federal Reserve Bank of New York's Empire State manufacturing survey, slipped 0.8 point to a reading of minus 25.4 in November from minus 24.6 in October. But the reading was better than the minus 26 reading that analysts surveyed by Briefing.com had expected.

The prices paid index fell more than 11 points to 20.5.

The part of the index that measures the number of employees plummeted more than 25 points to -28.9, it's lowest level since 2001.

Looking ahead, the future general business conditions index fell 11 points to 13, with 40% of respondents anticipating improvement over the next six months and 27% forecasting a decline.

The New York economy has been hit particularly hard by the crisis on Wall Street. The state faces a $12.5 billion deficit next year, and Gov. David Paterson has called the legislature into session Tuesday to decide on cutbacks.