‘As this index is very noisy, it is hard to understand what these massive moves up or down mean – however, this regional manufacturing survey is normally one of the more pessimistic.’ – Steven Hansen, Econintersect
Manufacturing activity in the New York State fell markedly in April, raising concerns over economic growth in the Q2 of 2017, a survey revealed on Monday. The New York Federal Reserve reported that its Empire State Manufacturing Index came in at 5.2 for April, following the preceding month’s reading of 16.4. Meanwhile, market analysts anticipated a slight drop to 15.2 points during the reported month. Data showed that 35% of the survey respondents said that business conditions had improved, while 30% claimed that they has worsened over the reported month. The New Orders Index plunged 14 points to 7.0, while the Unfilled Orders Index rose slightly to 12.4. On the positive side, the Employment Index jumped to its two-year high of 13.9 points in April, confirming the view that the US labour market is at or near full employment. The survey respondents also pointed to modestly rising input prices and increasing working hours. The respondents also expressed optimism of the long-term prospects of the US economy, with the Future Situation Index rising three points to 39.9 and the Future New Orders and Shipments Indexes decreasing slightly. Moreover, both Future Capital Expenditures and Future Technology Spending Indexes surged to 27.7 and 15.3 points, respectively.
