(Bloomberg) -- A measure of New York state manufacturing contracted for a third month in October, and a larger share of factories were more downbeat about business conditions in early 2023. 

The Federal Reserve Bank of New York’s general business conditions index fell nearly 8 points to minus 9.1 in October, data showed Monday. A reading below zero indicates contraction. The median estimate in a Bloomberg survey of economists called for a negative 4.3.

The Fed bank’s index of new orders was unchanged from the prior month at 3.7, pointing to modest growth. The gauge of shipments dropped by about 20 points to minus 0.3. A measure of factory employment pointed to a moderate increase in headcount. 

Looking ahead, the index for future business conditions fell 10 points to minus 1.8, the second weakest level since 2009. Nearly 36% of respondents said they expect general business conditions to weaken in the next six months.

The prices-paid measure rose for the first time since June, corresponding with a rebound in oil prices. Meanwhile, a gauge of prices received was little changed, holding well above pre-pandemic levels. 

Survey responses were collected between Oct. 3-11. The report is among first of several regional Fed bank factory indexes set for release in the coming weeks. 

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