While a report released by the Federal Reserve Bank of New York on Monday showed continued growth in the New York manufacturing sector in the month of April, the pace of growth slowed by much more than anticipated.
The New York Fed said its general business conditions index tumbled to 5.2 in April after dipping to 16.4 in March, although a positive reading still indicates growth. Economists had expected the index to edge down to 15.0.
The bigger than expected drop by the headline index came amid a notable slowdown in new orders growth, as the new orders index plunged to 7.0 in April after jumping to a multi-year high of 21.3 in March.
On the other hand, the report said the shipments index rose to 13.7 in April from 11.3 in March, indicating a faster rate of growth.
Job growth in the New York manufacturing sector also accelerated, with the number of employees index climbing to 13.9 in April from 8.8 in March. The index reached its highest level in just over two years.
The report also said the prices paid index edged up to 32.8 in April from 31.0 in March, while the prices received index rose to 12.4 from 8.8.
Looking ahead, the New York Fed said forward-looking indexes were mixed but generally at high levels, suggesting fairly widespread optimism about future conditions.
The index for future business conditions rebounded to 39.9 in April after sliding to 37.4 in the previous month.
On Thursday, the Philadelphia Federal Reserve is due to release its report on regional manufacturing conditions in April. The Philly Fed Index is expected to drop to 26.0 in April from 32.8.
by RTT Staff Writer
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