USA: New York’s manufacturing activity rebounds in February

The index measuring general business conditions climbed nearly 9 points to 12.1 points, its “highest in several months” level.

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Manufacturing activity in the New York area has regained some strength after several months of slowdown, and has exceeded analysts’ expectations, according to the Empire State monthly indicator released Tuesday by the Fed.

The index measuring general business conditions climbed nearly 9 points to 12.1 points, its “highest in several months” level. This is better than expected by analysts who expected a level of 9 points.

“Manufacturing activity increased at its fastest pace for months in New York State in February,” said the Fed, which also specifies that the component measuring the evolution of commodity prices increased at its pace “The fastest in almost a decade”, and, as a result, “the selling prices have increased significantly”.

The companies questioned are confident about the improvement of the economy in the coming months against the backdrop of the reopening of the economy in several states due to the intensification of vaccination campaigns against Covid-19.

President Joe Biden is also redoubling his efforts to pass his gigantic $ 1.9 trillion rescue plan which could be adopted before March 14, the date on which many aids affected by the unemployed expire.

In detail, “business activity has increased modestly,” further details the local branch of the American Central Bank. New orders increased (+4.2 points), although at a slower pace compared to January.

Delivery times have lengthened (+3.6 points) and stocks are up (+7.2 points).

A sign that the pace is accelerating, the situation is improving more quickly than in January on the employment front: the index measuring the number of employees is advancing by 0.9 point, that measuring the working time of employees is climbing 2.7 points (less use of part-time

Looking ahead, companies are optimistic that conditions will improve over the next six months, and capital spending plans have grown significantly.

“The near-term outlook for the manufacturing industry is pretty bright, with high demand, upcoming US bailout support ($ 1.9 trillion), and inventory restocking all set to keep the economy growing. ‘activity at a sustained pace,’ said Oren Klachkin, analyst for Oxford Economics, in a note.

In the longer term, however, we can expect, he said, that growth will slow down a bit as summer approaches. Many Americans will then have been vaccinated, and will prefer to spend their money in restaurants, bars, leisure activities or even travel.

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