A measure of New York state factory activity barely expanded in July as orders edged up and inflationary pressures eased.
(Bloomberg) — A measure of New York state factory activity barely expanded in July as orders edged up and inflationary pressures eased.
The Federal Reserve Bank of New York’s general business conditions index decreased 5.5 points to 1.1, data showed Monday. A reading above zero indicates growth. The median projection in a Bloomberg survey of economists called for minus 3.5.
The report showed a further cooling of inflationary pressures. Measures of prices paid and received by New York state manufacturers slid to levels not seen since mid-2020. However, the outlook for prices received picked up.
The overall factory index has been subject to large month-to-month swings over the last two years. As the economy regained its footing, manufacturers benefited from stronger sales of merchandise. Eventually, household demand transitioned toward services and experiences that led to a slowdown in factory activity more broadly since late last year.
State manufacturers had diverging views of business conditions, with roughly 29% reporting an improvement and some 27% citing a deterioration.
The New York Fed’s new orders index barely increased to 3.3, while shipments grew at a slower pace. The report showed manufacturers added workers after five months of paring payrolls.
The Fed bank’s forward-looking measures of demand and capital expenditures deteriorated.
–With assistance from Chris Middleton.
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