New York Fed Index Slips Back Into Negative Territory
(RTTNews) - After seeing a modest expansion in the previous month, manufacturing activity in New York state contracted once again in the month of May, according to a report released by the Federal Reserve Bank of New York on Thursday.
The report showed that the general business conditions index fell to a negative 3.2 in May from a positive 0.6 in April, with a negative reading indicating a contraction in the manufacturing sector. Economists had expected the index to come in at 0.0.
The New York Fed noted that roughly 23 percent of respondents reported that conditions had improved over the past month, while 27 percent reported that conditions had deteriorated.
The unexpected contraction in the sector was partly due to weakness in new orders, with the new orders index slipping to a negative 0.5 in May from a positive 0.1 in April. The shipments index also showed a notable decline, falling to 4.6 from 17.5 in the previous month.
At the same time, the report showed a slight improvement in employment, as the number of employees index edged up to 1.1 in May from 0.0 in April. The average workweek index also rose to 1.1 from 0.0.
The inflation picture was mixed, as the prices paid index jumped to a record high of 69.6 in May from 57.3 in April, while the prices received index fell to 15.2 from 20.8 in the previous month.
The New York Fed said that the future indexes were generally low and down from last month’s levels, suggesting that the outlook for the next six months remains subdued.
The future general business conditions index edged up to 23.9 in May from 19.6 in April, although it remains low by historical standards.
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Posted in Categories: Economy, Forex, Releases.
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