New York Manufacturing Index Unexpectedly Indicates Modest Growth In September
A report released by the Federal Reserve Bank of New York on Friday showed a substantial turnaround by New York manufacturing activity in the month of September.
The New York Fed said its general business conditions index surged to a positive 1.9 in September from a negative 19.0 in August, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to climb to a negative 10.0.
The much bigger than expected spike by the headline index reflected significant turnarounds by both new orders and shipments.
The new orders index shot up to a positive 5.1 in September from a negative 19.9 in August, while the shipments index jumped to a positive 12.4 in September from a negative 12.3 in August.
Meanwhile, the number of employees index dipped to a negative 2.7 in September from a negative 1.4 in August, indicating a slightly faster decrease in employment.
The report also said the prices paid index crept up to 25.8 in September from 25.2 in August, while the prices received index climbed to 19.6 in September from 12.6 in August.
Looking ahead, the New York Fed said firms continued to grow more optimistic about the six-month outlook, with the index for future business conditions climbing to 26.3 in September from 19.9 in August.
The index for future business conditions reached its highest level in over a year, as new orders and shipments are expected to increase significantly in the months ahead and employment is expected to grow.
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