- Empire State factory index eased this month to minus 6.6
- Prices received by state manufacturers dropped to one-year low
New York state factory activity contracted for an eighth straight month in July while a measure of prices received by producers declined to a one-year low.
The Federal Reserve Bank of New York’s July general business conditions index eased less than a point to minus 6.6. A reading below zero indicates contraction, and the median forecast in a Bloomberg survey of economists called for minus 7.6.
While the Fed bank’s gauge of prices paid for materials rose 2 points, an index of prices received by state manufacturers dropped 1 point to 6.1.
Meanwhile, the six-month outlook for overall activity slipped, indicating producers were slightly less upbeat about the economy’s prospects. The outlook indexes for new orders and shipments both fell, showing less expansion.
The regional data have been subject to wide swings on a monthly basis for more than two years. A broader gauge of manufacturing across the US has been stuck in contraction territory for all but one month since October 2022 amid high borrowing costs, restrained business investment in equipment and uneven consumer spending as the Federal Reserve has kept interest rates higher for longer.
The New York Fed’s regional gauge of current new orders was little changed and showed a modest contraction. An index of current factory employment improved but remained in contraction territory.
Written by: Mark Niquette — With assistance from Kevin Varley @Bloomberg
The post “New York Manufacturing Contracts for an Eighth Straight Month” first appeared on Bloomberg
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