(Kitco News) - Manufacturing activity in the New York region showed massive improvement this month, beating expectations and rising sharply into expansionary territory, according to the latest figures published by the New York Federal Reserve.
The regional central bank announced on Friday that its Empire State manufacturing survey came in at 31.2 in November, after posting a -11.9 print in October. The data was far better than expectations, as consensus forecasts called for a -0.7 reading.
“Business activity grew strongly in New York State in November,” the report said. “The headline general business conditions index shot up forty-three points to 31.2, its highest reading in nearly three years. New orders and shipments rose substantially. Delivery times were slightly longer, while supply availability was somewhat lower. Inventories held steady. Labor market conditions pointed to steady employment levels and a longer average workweek. The pace of input and selling price increases remained modest and similar to last month. Firms remained optimistic about the six-month outlook.”
Spot gold sold off sharply in the moments after the release, and last traded at $2,562.16 per ounce for a loss of 0.10% on the session.
The components of the report showed strong improvement in virtually all areas of the region’s manufacturing sector.
“The new orders index climbed thirty-eight points to 28.0, and the shipments index rose thirty-five points to 32.5, pointing to sharp increases in both orders and shipments,” the report said. “Unfilled orders fell modestly. The inventories index climbed to 1.0, signaling that inventories levelled off. The delivery times index moved up to 3.1, suggesting that delivery times were slightly longer, and the supply availability index came in at -4.1, a sign that supply availability worsened somewhat."
“Labor market conditions were stable,” they added. “The index for number of employees edged down to 0.9, indicating that employment levels were little changed, and the average workweek index edged up to 6.1, pointing to a modest increase in hours worked. Price increases remained steady and modest: the prices paid index came in at 27.8, and the prices received index was 12.4.”
Firms also remained optimistic that conditions would continue to improve in the months ahead. “After reaching a multi-year high last month, the index for future business activity edged down six points to a still-high reading of 33.2, with half of respondents expecting conditions to improve over the next six months,” the report said. “Employment is expected to grow moderately. Capital spending plans continued to expand.”
