(Kitco News) - Manufacturing activity in the New York region showed continued weakness this month, according to the latest figures published by the New York Federal Reserve.
The regional central bank said on Monday that its Empire State manufacturing survey rose to -14.3 in April, after coming in at -20.9 in March. The data was still worse than expectations, as consensus forecasts called for a -9 reading.
“Manufacturing activity continued to contract in New York State in April, and employment continued to decline,” said Richard Deitz, Economic Research Advisor at the New York Fed. “Optimism about the outlook for future business conditions remained subdued.”
Gold prices held steady following the downbeat economic data. Spot gold last traded at $2,356.63 in the minutes following the 8:30 am release, up 0.49% on the day.
The components of the report showed broad-based weakness in the region’s manufacturing sector.
The New Orders Index rose slightly to -16.2 from March’s reading of -17.2, while the Shipments Index dropped deeper into negative territory at -14.4, down from -6.9 last month.
“The index for number of employees came in at -5.1, and the average workweek index was little changed at -10.6, pointing to an ongoing decline in employment levels and hours worked,” the report said.
The report also showed an uptick in inflation pressures. “The prices paid index moved up five points to 33.7, indicating that input price increases picked up slightly, and the prices received index held steady at 16.9.”
The rising inflation numbers are seen as a potential negative for gold as they could compel the Federal Reserve to maintain its restrictive monetary policies and delay rate cuts for longer than expected.
