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Updated: Empire State Manufacturing Index Falls 21 Points To 6.2 In October

By Kitco News
Wednesday October 15, 2014 8:30 AM

Editor's Note: The article was updated to include more information from the report and comments from CIBC.

(Kitco News) -The Empire State manufacturing survey shows that business conditions in New York weakened significantly in October, giving back all of the gains seen last month, the New York Federal Reserve said Monday. 

The general business conditions index in the manufacturing gauge fell 21 points in October to a reading of 6.2, compared to September’s reading of 27.5. According to consensus estimates, economists were expecting to see a modest pullback in the region’s manufacturing sector and were forecasting a reading of about 20.3.

Looking at some of the components of the report, the new orders index dropped 19 points and fell into negative territory with a reading of -1.7. At the same time, the shipment index dropped 26 points to 1.1.

However the one bright spot in the survey was the employment index, which rose 7 points to 10.2, “pointing to an increase in employment levels."

The survey also showed that price pressures remained subdued as both the input prices index and selling prices index both fell to 11.4 and 6.8, respectively.

The report added that the outlook also weakened as the index for future general business conditions fell five points to 41.7; future new orders index fell three points to 42.3.

"“Nevertheless, they remained fairly high by historical standards, and conveyed an expectation that activity would continue to grow in the  months ahead,” the report said.

The New York Fed survey is the first regional survey to be released this month; however, later in the day markets will receive anecdotal reports from all the districts in the Federal Reserve’s Beige Book.

Andrew Grantham, senior economist from CIBC World Markets, dismissed the much weaker than expected survey, saying that “the headline figure in that survey can be sentiment driven and prone to volatility.”

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

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 precious metal products, 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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