Empire State manufacturing index improves more than expected
Manufacturing activity in the New York area improved a lot more than expected in November, according to a survey released on Tuesday.
The New York Fed’s Empire State general business conditions index rose to 4.5 from -9.1 in September. This was well ahead of analysts’ expectations for a reading of -5.0.
According to the survey, 33% of respondents reported that conditions had improved over the month, while 29% said they had deteriorated.
The new orders index fell to -3.3 in November from 3.7 in October, while the shipments index improved to 8.0 from 0.3.
Meanwhile, the index for unfilled orders declined to -6.8 from -3.7 and the delivery time gauge printed at 2.9, versus -0.9% in October. The inventories index rose to 16.5 in November from 4.6 the month before, while the gauge for prices paid was 50.5, up from 48.6.
The index for future business conditions fell four points on the month in November to -6.1 - the weakest outlook since July.
Oxford Economics said: "Although manufacturing activity returned to expansion, activity is expected to slow heading into 2023. Weakening domestic demand, high inflation, elevated interest rates, and recessionary pressures are likely to constrain the sector's advance."