Manufacturing activity in New York state accelerated moderately in September, beating expectations for a continued slowdown thanks to increases in new orders and shipments.
The New York Fed’s monthly gauge of manufacturing activity in the state rose to 1.9 this month, after being negative at 19.0 in August. Numbers above zero indicate an expansion of activity.
Economists polled by Reuters expected another month of contraction in activity, with a median forecast of -10.
The Business Outlook Index rose to 26.3 from 19.9 last month, its highest level in more than a year. Business optimism was accompanied by improved order and shipment forecasts.
The rise in optimism among New York manufacturers contrasts with a recent survey of small businesses released Tuesday by the National Federation of Independent Business, which showed a decline in business optimism coupled with difficulties hiring workers skilled workers and concerns about inflation.
Another index shows that New York State’s manufacturing sector experienced a labor force contraction, going from -1.4 basis points in August to -2.7 basis points. The continued decline in employment is moving away from the first positive figure recorded in July since January.
Manufacturers paid slightly more for inputs last month, with the prices paid index increasing 0.6 basis points. Despite this modest increase, the index remains below the figures observed in 2022 and the first quarter of 2023, which suggests a steady slowdown in inflation.
The six-month outlook for the capital expenditure index weakened, in line with expectations of slowing growth, and fell to 10.3 basis points, from 13.6 points in the previous period. Capital spending is expected to contract in 2023 after significant investments made during the influenza A (COVID-19) pandemic. (Reporting by Amina Niasse; Editing by Chizu Nomiyama)
2023-09-15 15:59:43
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