(Kitco News) - Manufacturing activity in the New York region rose back into expansionary territory this month, 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 rose to 5.5 in July, after posting a -16 print in June. The data was significantly better than expectations, as consensus forecasts called for a smaller improvement to -9.
“Manufacturing activity in New York State picked up for the first time in several months, according to the July survey,” the report said. “The headline general business conditions index climbed twenty-two points to 5.5, its first positive reading since February. New orders edged higher and shipments increased. Delivery times lengthened, and supply availability continued to worsen. Inventories grew significantly.”
“Employment expanded for a second consecutive month, and the average workweek also increased,” they said. “Input price increases picked up, while the pace of selling price increases held steady. Capital spending plans grew. Firms remained fairly optimistic about the outlook.”
Gold prices sold off in the moments after the 8:30 am EST release, which came out at the same time as June CPI. Spot gold last traded at $3,348.05 per ounce for a gain of 0.13% on the session.
The components of the report showed conditions improving on balance across the region’s manufacturing sector.
“The new orders index rose sixteen points to 2.0, suggesting that orders edged up, and the shipments index climbed nineteen points to 11.5, its highest reading in several months,” the New York Fed said. “Unfilled orders declined. The inventories index rose fifteen points to 15.6, a sign that business inventories grew. Delivery times were somewhat longer, and the supply availability index remained below zero at -11.0, suggesting that supply availability continued to worsen.”
Employment also expanded for the second month in a row in July. “The index for number of employees rose five points to 9.2, and the average workweek index rose to 4.2,” the report noted. “This marks the first time that both indexes have been positive since 2022, suggesting that both employment and hours worked increased.”
Price pressures were one key negative area in July. “The prices paid index rose nine points to 56.0, pointing to a pickup in input price increases, while the prices received index held steady at 25.7, suggesting that selling price increases remained moderate,” they said.
The index for future general business conditions edged up to 24.1, suggesting that, on the whole, businesses expect activity to increase in the months ahead,” the report concluded. “New orders and shipments are expected to increase, and supply availability is expected to be little changed. Capital spending plans picked up.”
