The New York
Federal Reserve reported on Tuesday that its latest Empire State Manufacturing
Survey found that manufacturing activity in New York State returned to growth in early July after four
months of shrinkage.
According to
the survey, the NY Fed Empire State manufacturing index surged from -16.0 in June
to +5.5 this month, indicating that business activity in the New York region’s
manufacturing sector grew for the first time since February.
Economists
had forecast the index to increase to -9.0.
A
reading above zero indicates expansion.
According to
the report, the new orders index jumped 16.2 points to +2.0, indicating that
orders edged up last month, and the shipments index climbed 18.7 points to +11.5,
its highest level in several months.
In addition, the inventories index surged 14.7 points to +15.6,
signalling that business inventories continued to grow this month. Meanwhile, the unfilled orders index rose 1.9
points to -6.4, pointing to a weaker decrease in unfilled orders. Elsewhere, the
employment index increased 4.5 points to +9.2, suggesting that employment expanded
for the second consecutive month. The delivery times index went up 6.5 points to +8.3, implying that delivery
times were somewhat longer, while the supply availability index fell 2.7 points
to -11.0, indicating that supply availability continued to worsen.
On the price
front, the prices paid index increased 9.2 points to 56.0 in July, pointing to
a pickup in input price increases, while the
prices received index slipped 0.9 point to 25.7, suggesting that selling price gains remained
moderate.