By Xavier Fontdegloria
Manufacturing activity in the New York state stalled in February for the second consecutive month, according to data from a survey compiled by the Federal Reserve Bank of New York released Tuesday.
The Empire State Manufacturing Survey’s general business conditions index rose to 3.1 in February from minus 0.7 in January, well below the 11.0 consensus forecast by economists polled by The Wall Street Journal.
Survey results signal that regional factory activity grew marginally over the month, as any reading above zero suggests that the sector is expanding. “Business activity was little changed in New York State”, the New York Fed said.
Around 34% of the firms polled in February said business conditions had improved, while 30% reported that conditions worsened.
Demand for goods held steady in February. The new orders index rose to 1.4 from minus 5.0 the previous month, and the shipments index increased slightly to 2.9 from 1.0.
Labor market indicators pointed to a solid increase in employment, the NY fed said. The index for number of employees rose to 23.1 from 16.1 the month before, while the average workweek index was broadly stable at 10.9.
The delivery times index was unchanged at 21.6, signaling that vendor times continued to lengthen. The unfilled orders index edged up to 14.4 from 12.1, the data showed.
Price pressures remained widespread, according to the survey. The prices paid index was broadly unchanged at 76.6, remaining near its recent peak, while the prices received index increased sharply to 54.1 from 37.1, reaching a new record high.
Respondents to the survey were optimistic about the short-term outlook, although much less so than in January. The index for future business conditions fell to 28.2 from 35.1, the lowest level since the early stages of the pandemic. Plans for capital and technology spending remained strong, and longer delivery times, higher prices, and increases in employment are all expected in the months ahead, the NY Fed said.
Write to Xavier Fontdegloria at [email protected]
(END) Dow Jones Newswires
February 15, 2022 08:44 ET (13:44 GMT)
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