New York manufacturing activity dips further in October (Fed)

Washington (awp/afp) – Manufacturing activity in the highly industrialized region of New York, in the northeastern United States, deteriorated again in October, and more than expected, and companies are not not optimistic about the next few months.

The Empire State monthly index, released Monday by the New York Fed – regional arm of the US central bank – fell 8 points to -9.1 points.

An index below zero means that the activity is contracting.

And the decline is stronger than expected, since analysts expected -5.0 points, according to a MarketWatch consensus.

Activity is down for the third month in a row in this region. The index even experienced the second largest drop in its history in August, behind April 2020.

“New orders, unfulfilled orders, and shipments have changed little since last month,” the New York Fed said in its statement, while “delivery times remained stable and inventories increased slightly.”

The indicators also show “a slight increase in employment and the average working week”.

The situation, on the other hand, is not improving on the inflation front, since “the rise in the prices of raw materials and spare parts has accelerated, while the rate of increase in selling prices has remained constant”.

And the industrialists of the region are pessimistic for the months to come, since, specifies the Fed, “for the future, the companies do not expect that the trade conditions improve over the next six months”.

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