New York Empire State manufacturing index unexpectedly falls

The New York Empire State manufacturing index surprisingly fell to -11.6 in May, down from 24.6 in April to miss market expectations for a reading of 17.

New orders decreased to -8.8, while shipments fell at the fastest pace since early in the Covid-19 pandemic - tumbling to -15.4 from 34.5 in the previous month.

Delivery times also continued to lengthen and inventories expanded, according to the Federal Reserve Bank of New York.

Labour market indicators hinted at a modest increase in employment, up to 14 from 7.3 in April, while the average workweek increased to 11.9 from 10.

The prices paid index and prices paid indices both moved lower but remained elevated, dropping to 73.7 and 45.6, respectively, while optimism regarding the six-month outlook was subdued in May at 18 - up from 15.2 in April.

Reporting by Iain Gilbert at Sharecast.com