The Empire State index stands at 3.1 points, after falling last month to -0.7. Analysts, however, expected a much stronger rebound, to 12 points.
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New York-area manufacturing activity remained nearly flat in February compared to January, returning to positive territory after a dip last month, but optimism among business leaders in the sector is at half mast, at most. low since mid-2020.
The index measuring general activity stood at 3.1 points in February, after falling last month to -0.7, according to the monthly indicator “Empire State” published on Tuesday by the regional branch of the Reserve. Federal (Fed).
The index thus goes back above the zero bar, below which it fell last month, for the first time since June 2020. When the index is above zero, this means that activity is growing; an index below zero indicates that activity is contracting compared to the previous month.
Analysts, however, expected a stronger rebound, to 12 points.
“Companies were generally optimistic about the six-month outlook, but that optimism has faded,” the Fed said in its statement.
Among the index components, “new orders and shipments were flat, and backlogs swelled. Delivery times have continued to lengthen,” the Fed said.
Elsewhere, employment marked “a solid increase”, as well as “a longer average working week”.
As for the index measuring prices paid to suppliers, it “remained close to its recent peak”, and the index of prices paid by customers “hit a new record”.
Inflation hit 7.5% year on year in January, its fastest pace in nearly 40 years, according to the Labor Department’s CPI index.
Measured in a highly industrialized region, the New York State manufacturing activity index is considered a good barometer of the evolution of the American economy.
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