Conditions for New York manufacturers have continued to improve modestly in July, the Federal Reserve Bank of New York revealed in a report on Monday, with the index of regional manufacturing activity showing an unexpected increase for the month.
The New York Fed said its general business conditions index rose to 9.5 in July from 7.8 in June, with a positive reading indicating an increase in regional manufacturing activity. The increase surprised economists, who had been expecting the index to drop to 5.0.
With the unexpected increase, the general business conditions index reached its highest level since hitting 10.0 in February.
The report also showed notable turnarounds by new orders and shipments. The new orders index climbed to a positive 3.8 in July from a negative 6.7 in June, while the shipments index jumped to a positive 9.0 from a negative 11.8.
The number of employees index also rose to 3.3 in July and coming in at zero in June, although the average workweek index remained negative.
On the inflation front, the prices paid index dipped to 17.4 in July from 21.0 in June, while the prices received index fell to 1.1 from 11.3.
The New York Fed noted that the indexes for the six-month outlook generally rose, indicating increased optimism about future conditions.
The future general business conditions index advanced to 32.0 in July from 25.0 in June, reaching its highest level since March.
On Thursday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity. The Philly Fed Index is expected to dip to 9.0 in July from 12.5 in June.
by RTT Staff Writer
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