Selling prices soared at their fastest rate in twenty years and reached an all-time high.
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New York-area manufacturing activity hit a “multi-year” high in April, as selling prices climbed at their fastest rate in twenty years to an all-time high.
The index measuring general business conditions jumped nine points from March, reaching 26.3 points, more than the 23 points expected by analysts, according to the Empire State monthly indicator released Thursday by the Fed. As for the prices paid to suppliers, they are at their highest level since 2008.
Another record: delivery times are the longest ever recorded.
In addition, new orders and shipments are progressing at a solid pace, details the New York Fed.
However, employment and the number of hours worked are increasing “modestly”. But the outlook is good, as the index measuring hiring intentions is also climbing to a level never seen before, with nearly half of the companies surveyed thinking of increasing their workforce in the coming months.
The economic recovery in the United States is driven by the rapid pace of vaccinations – nearly a quarter of Americans are now fully vaccinated – but also by direct checks and other aid paid to Americans as part of stimulus plans, and in particular of the last, adopted at the beginning of March.
This drives up prices, especially as suppliers are struggling, globally, to meet the high demand, which causes congestion in factories and ports. The prices of spare parts and raw materials are therefore on the rise, and manufacturers have started to pass it on to the prices of their products.
Inflation was visible in March and, year on year, it accelerated to 2.6%, its fastest pace since fall 2018, according to the CPI index released on Tuesday.
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