Washington, D.C., September 15, 2006--New York Federal Reserve Bank reported that its Empire State Manufacturing index rose to 13.8 in September, having dropped to 11.0 in August. Positive numbers in the Empire State index are said to indicate economic expansion.
Regarded as a measure of manufacturing activity iin the New York area, and by extrapolation a national economic indicator worthy of note, the Empire State index has fallen from a high of 29.0 last June.
Traders follow the Empire State Index, seeing it as an indicator of the National Institute for Supply Management factory survey, which is due in two weeks. In August, the ISM factory index inched lower to 54.5% from 54.7% in the previous month.
Other experts say that the correlations between the ESI and the ISM have been less clear this year.
The NY Fed reported further:
- The outlook for the next six months is positive.
- The future general business conditions index inched lower to 35.2 from 35.8 in August.
- Future capital spending plans rose to 36.0 in September from 26.2 in August.
- In September, the new orders index fell to 14.0 in September from 19.8 in the previous month.
-Prices paid index fell to 41.0 in September from 44.3 in August. This is the third straight monthly decline.
- Shipments rose to 20.6 in September from 15.4 in the previous month.
-Unfilled orders rose to 2.3 from -6.6 in August.
- Inventories were negative for the fourth straight month, inching higher to -4.0 from -10.7 in August.
- The employee index rose to 12.5 in September from 6.5 in August.
