(Kitco News) - Activity in the U.S. manufacturing sector improved from sharp declines at the start of the year, according to the latest data from the New York Federal Reserve and the Philadelphia Federal Reserve.
Thursday, the two regional banks said that manufacturing activity in their respective regions improved more than expected.
The New York Fed said its Empire State Survey increased to -2.4 in February, a sharp recovery from January’s -43.7 reading. The data was better than expected as economists expected to see a shallower rebound to -13.7.
At the same time the Philly Fed said its Manufacturing Business Outlook Survey rose to 5.2, up from January’s reading of -10.6. According to consensus estimates, economists forecasted a reading of -8.0.
The gold market is not seeing much reaction to the better-than-expected data as prices continue to hold above $2,000 an ounce. April gold futures last traded at $2,012.80 an ounce, up 0.42% on the day.
Looking at the components of the Empire State survey, the New Orders index rose to -6.3, up from the previous reading of -49.4; at the same time, the Shipments Index rose to 2.8, up from -31.3 reported in January.
The labor market also improved with the Number of Employees index rising to -0.2, up from -6.9.
The report also noted that the improved economic activity is also creating new inflation pressures. The Prices Paid Index rose to 33.0, up from January’s reading of 23.2.
The Philly Fed Survey revealed similar trends. The New Orders Index rose to -5.2, up from the previous reading of -17.9. The Shipments Index rose to 10.7, up from -6.2.
However, the region’s labor market lost significant momentum last month with the Number of Employees Index dropping to -10.3, down from January’s reading of -1.8.
Inflation also remains persistently elevated with the Prices Paid Index rising to 16.6, up from January’s reading of 11.3.
