New York state manufacturing activity shrank in February for a third month, though the pace of the deterioration slowed significantly and the outlook improved.
(Bloomberg) — New York state manufacturing activity shrank in February for a third month, though the pace of the deterioration slowed significantly and the outlook improved.
The Federal Reserve Bank of New York’s general business conditions index increased more than 27 points to minus 5.8 this month, data showed Wednesday. While a reading below zero indicates contraction, the figure was higher than all estimates in a Bloomberg survey of economists.
The gauge has shown contraction in six of the last seven months, underscoring a number of headwinds faced by the manufacturing sector as the Fed raises interest rates to combat inflation.Â
The survey showed increases in the measures of prices paid and received by the state’s manufacturers, indicating that while inflationary pressures are cooling, they remain stubborn. The index of prices received reached a six-month high.
New orders increased more than 23 points to minus 7.8 in February, the fourth-straight month of contraction, while shipments steadied.
At the same time, the Fed bank’s manufacturing outlook improved somewhat. The index climbed to 14.7, the highest since May as orders and shipments continued to show expansion.
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