New York Fed Reports Improving Sentiment In Manufacturing Sector
(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 Aprilâ€™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 Aprilâ€™s reading of 9; at the same time, the shipments index rose to 19.1 from the previous level of 17.5.
The sectorâ€™s labor market continues to grow with the number of employees index rising to 8.7, up from Aprilâ€™s reading of 6.0.
Positive for the gold market, inflation within the sector saw a strong rise to 54, up from Aprilâ€™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.