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(Wallace Refiners) – New York state’s manufacturing sector is seeing a significant rise in activity, helping to easing concerns of a slowing economy, according to the latest report from the New York Central Bank.
Friday, the regional central bank said that its Empire State manufacturing survey’s general business conditions index rose to a reading of 24.6 in April, up from March’s drop to -11.8. The data handily beat expectations as economists were looking for the index to rise to 0.9.
This is the survey’s best reading since December.
“After three months of sluggishness, manufacturing activity picked up significantly in New York State, according to the April survey,” the report said. “Forty percent of respondents reported that conditions had improved over the month, while fifteen percent reported that conditions had worsened.”
The latest data will not have any impact on markets, which are closed because of the Easter holiday.
Looking at the components of the report, the New Orders Index jumped to 25.1, up from March’s reading of -11.2. At the same time, shipments increased 34.5, up from the precious level of -7.4.
However, there the labor market lost some momentum with the Employee index dropping to 7.3, down from the March reading of 14.5.
In jump in manufacturing activity is also coming at a price as inflation pressures continue to rise. The report said that the Prices Paid Index rose to a record high of 86.4, up from the previous reading at 73.8.
The report also highlighted growing risks on the horizon. “Optimism about the six-month outlook declined. The index for future business conditions fell twenty-one points to 15.2, its lowest level since early in the pandemic,” the report said.
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