A measure of New York state factory activity unexpectedly expanded this month, driven by snapbacks in orders and shipments.
(Bloomberg) — A measure of New York state factory activity unexpectedly expanded this month, driven by snapbacks in orders and shipments.
The Federal Reserve Bank of New York’s general business conditions index for September increased nearly 21 points to 1.9, data showed Friday. A reading above zero indicates growth, and the latest figure was well above the minus 10 median estimate in a Bloomberg survey of economists.
The index has been subject to large month-to-month swings over the last two years. Manufacturing more generally has struggled for momentum this year as producers contend with weak export markets and efforts by companies to better align inventories with sales.
However, the report’s forward-looking measures also indicated greater optimism about future demand. The Fed bank’s expected business conditions index advanced to the highest level since March 2022.
The New York Fed’s index of current new orders jumped by 25 points to 5.1, the highest reading since April. The shipments gauge increased by nearly that much.
The report showed inflationary pressures continue to linger. Measures of prices paid and received by New York state manufacturers both increased.
Measures of unfilled orders and inventories continued to shrink, suggesting manufacturers are making more headway in clearing backlogs.
–With assistance from Kristy Scheuble.
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