(Kitco News) - Activity in New York’s manufacturing sector is significantly picking up according to the latest report from the New York Federal Reserve.
Friday, the regional central bank said that its Empire State manufacturing survey's general business conditions index rose to a reading of 11.1 in July, up from June’s negative reading of 1.2 The data handily beat expectations as economists were looking for the index to fall deeper into contraction territory with a reading of -2.1.
“Thirty-four percent of respondents reported that conditions had improved over the month, and twenty-three percent reported that conditions had worsened,” the report said.
The gold market is seeing little reaction to the better-than-expected manufacturing data. August gold futures are holding support above $1,700 an ounce. August gold last traded at $1,705.50 an ounce, roughly unchanged on the day.
The components of the report showed some broad improvement. The New Orders index rose to 6.2, up from June’s reading of 5.3. At the same time, the Shipments Index jumped to 25.3, up from the previous reading of 4.0.
However, the report also noted that the labor market is losing momentum. The Number of Employee Index dropped to 18.0, down from June’s reading of 19.0.
Negative for the gold market, the report also noted that inflation pressures are receding even if prices remain high. The Prices Paid Index dropped to 64.3, down from June’s reading of 78.6.
