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New York Fed Reports Improving Sentiment In Manufacturing Sector

Kitco News

(Kitco News) - Sentiment in the New York State manufacturing sector is improving according to the latest data from the New York Federal Reserve.

Tuesday, the general business conditions index in the Empire State manufacturing survey pushed higher, to a reading of 20.1 in May, up from April’s reading of 15.8.

"Looking ahead, firms were somewhat more optimistic about the six-month outlook than they were in April, though less so than earlier this year," the report said.

The data was better than expected as consensus forecasts were calling a modest decline to 15.1.

Looking at the components of the report, the new orders index saw a strong increase, rising to 16, from April’s reading of 9; at the same time, the shipments index rose to 19.1 from the previous level of 17.5.

The sector’s labor market continues to grow with the number of employees index rising to 8.7, up from April’s reading of 6.0.

Positive for the gold market, inflation within the sector saw a strong rise to 54, up from April’s reading of 47.4. Commodity analysts have said that gold should do well in a rising inflationary environment as the Federal Reserve is expected to raise interest rates at a gradual pace.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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