Manufacturing Activity Accelerates in New York Reg
Washington, DC, October 16, 2006--Manufacturing activity accelerated in the New York region in early October, according to the Empire State index released Monday by the New York Federal Reserve Bank.
The Empire State index rose to 22.9 in October from 13.8 in September. It's the highest since June. Readings over zero indicate most firms in the region are growing.
Economists were expecting a decline to about 12.6.
The New York index is one of the first snapshots of factory activity in the current month. Although it can be volatile from month to month, it can be a guide to national factory activity reported in the Institute for Supply Management index that will be released on Nov. 1.
In the New York region, the new-orders index fell to 11.8 from 14.0. The employees index rose to 19.4 from 12.5.
The prices-paid index fell to 30.8 from 41.0, the lowest level in more than a year and showing lesser inflationary pressures. The shipments index rose to 22.5 from 20.6.
The delivery-time index fell below zero for the first time in nearly a year, indicating that delivery times shortened. The Fed watches measures of delivery times to see if bottlenecks are developing that could engender inflation.
Looking ahead six months, firms were slightly less optimistic than in September. The future index fell to 30.2 from 35.2
In a special question, 44% of firms said they planned to invest more in 2007 than in 2006, with many firms citing a need for labor-saving equipment and others citing strong sales. About 21% of firms said they'll cut their capital spending next year.
