(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 Thursday that its Empire State manufacturing survey improved to 7.7 in January, after posting a -3.7 print in December. The data was better than expectations, as consensus forecasts called for a rise to 1.0.
“New orders increased, and shipments grew at a solid pace,” the report said. “Delivery times were unchanged and inventories edged down, while supply availability worsened slightly. Employment and the average workweek both declined after increasing over the prior two months. The pace of input price increases was little changed and remained elevated, while the pace of selling price increases slowed to its lowest pace in nearly a year. Capital spending plans grew modestly for a third consecutive month. Firms remained fairly optimistic about the outlook, with half expecting conditions to improve over the next six months.”
Gold prices slid back below the $4,600 support level in the moments after the 8:30 am EST release. Spot gold last traded at $4,593.63 per ounce for a loss of 0.71% on the session.
The components of the report showed conditions improving on balance across the region’s manufacturing sector.
“New orders and shipments increased, with the new orders index rising eight points to 6.6 and the shipments index climbing twenty-one points to 16.3, its highest level in over a year,” they said. “Unfilled orders decreased. Inventories edged down and delivery times were unchanged. The supply availability index came in at -4.1, suggesting supply availability was slightly worse than last month.”
The employment picture weakened, however. “The index for number of employees fell seventeen points to -9.0, its lowest reading in two years, while the average workweek index fell eight points to -5.4, suggesting a decrease both in employment levels and in hours worked.”
Selling price increases also slowed significantly. “The prices paid index held steady at 42.8, indicating input price increases remained elevated, and the prices received index dropped eleven points to 14.4, its lowest level since February 2025, pointing to slowing in selling price increases,” they noted.
Looking ahead, the New York Fed said that firms remained fairly optimistic about the outlook. “The index for future business conditions came in at 30.3, with about half of respondents expecting conditions to improve over the next six months,” the report said. “New orders and shipments are expected to increase. Supply availability is expected to be unchanged. Firms continue to anticipate significant price increases, though somewhat less so than in recent months. The capital expenditures index rose three points to 10.3, pointing to ongoing modest capital spending plans."
