(Kitco News) - Manufacturing activity in the New York region improved this month following last month’s drastic decline into contractionary territory, according to the latest figures published by the New York Federal Reserve.
The regional central bank announced on Tuesday that its Empire State manufacturing survey came in at 5.70 in February, after posting a -12.60 print in January. The data was better than expectations, as consensus forecasts called for a smaller improvement to -1.0.
“Business activity edged higher in New York State in February,” the report said. “New orders and shipments grew moderately. Delivery times were slightly longer, and supply availability was slightly lower. Inventories continued to expand modestly. Employment levels moved lower. Input prices increased at the fastest pace in nearly two years, and selling price increases also ticked up noticeably. Though firms expect conditions to improve over the next six months, optimism about the outlook dropped significantly.”
Gold prices rose to fresh session highs in the moments after the 8:30 am EST release. Spot gold last traded at $2,918.83 per ounce for a gain of 0.70% on the session.
The components of the report showed conditions strengthening in most areas of the region’s manufacturing sector.
“The new orders index rose twenty points to 11.4, suggesting orders increased after declining last month, and the shipments index rose sixteen points to 14.2, indicating that shipments increased,” the report noted. “Unfilled orders held steady. The inventories index remained positive at 8.7, a sign that inventories grew. The delivery times index came in at 5.4, suggesting that delivery times were slightly longer, and the supply availability index dipped to -2.2, a sign that supply availability edged slightly lower."
“The index for number of employees fell to -3.6, suggesting that employment levels moved somewhat lower, while the average workweek index was -1.2, suggesting that hours worked held steady,” they added.”
Both price indexes rose for the second consecutive month, however. “The prices paid index rose eleven points to 40.2, its highest level in nearly two years, and the prices received index rose ten points to 19.6,” the report said.
And while firms expect conditions to improve in the coming months, optimism declined significantly. “The index for future business activity fell fifteen points to 22.2,” the report said. “Capital spending plans remained soft. Supply availability is expected to contract somewhat over the next six months.”
