NEW YORK (CNN/Money) - Manufacturing activity in New York state decelerated in early March, the New York Federal Reserve said Monday, falling well short of Wall Street forecasts.

The "general business conditions" index of the New York Fed's Empire State Manufacturing Survey of about 100 regional manufacturers dropped to 25.3 from 42 in February. Economists, on average, expected the index to fall to 38.9, according to Briefing.com.

U.S. stock market futures extended earlier losses after the report, pointing to a negative opening on Wall Street. Treasury bond prices rose.

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The New York Fed's survey has been in existence only since July 2001 and has often been volatile.

The index measuring expectations for business conditions six months from now fell to 53 from 53.9 in February. The New York Fed said 64 percent of respondents expected better conditions in the future, compared with 11 percent expecting conditions to worsen.

The "number of employees" index was positive, but it dropped to 9.7 from 16.5 in February. The "average employee workweek" index dropped to 11.9 from 26.5.

The new orders index fell to 23.5 from 34.9 in February. Shipments slipped to 26.2 from 26.6, and inventories fell to 3.9 from 8.6 in February.