Aug 16 (Reuters) - The New York Federal Reserve said on Monday its barometer of manufacturing business activity in New York State declined more than expected in August after growing at a record-setting pace in the month before. The regional Fed’s “Empire State” index on current business conditions fell around 25 points to 18.3, lower than a reading of 29.0 forecast by analysts polled by Reuters. The index had hit a record high of 43 in July. (Reporting by Evan Sully; Editing by Chizu Nomiyama) Our Standards: The Thomson Reuters Trust Principles.