Sept. 16 (Bloomberg) -- Manufacturing in the New York region expanded less than forecast in September even as orders and shipments picked up, while factories’ outlooks improved.
The Federal Reserve Bank of New York’s general economic index eased to 6.3 from 8.2 last month. Readings greater than zero signal expansion in New York, northern New Jersey and southern Connecticut. The median projection in a Bloomberg survey of economists called for a reading of 9.1. A measure of the six-month outlook climbed to the highest since April 2012.
Factories are seeing sustained U.S. consumer demand and business investment as the economy shakes off the effects of fiscal drag and overseas markets improve. Further gains in housing and auto industries are also bolstering growth in manufacturing, which accounts for about 12 percent of the economy.
“We went through some softness in manufacturing in the spring and early summer, but we’re poised now to see some improvement,” Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida, said before the report. “Some of the headwinds the economy has faced are fading a bit.”
Estimates in the Bloomberg survey of 52 economists for September ranged from 4 to 15.
The Empire State gauge of new orders increased to 2.4 in September from 0.3 the previous month. A measure of shipments climbed to 16.4 from 1.5 the prior month.
The index of prices paid rose to 21.5 from 20.5, while prices received increased to 8.6 from 3.6. A measure of factory employment declined to 7.5 from 10.8.
Factory executives in the New York Fed region were more optimistic about the future. The gauge measuring the outlook six months from now advanced to 40.6 from 37.4.
Economists monitor the New York report and Philadelphia Fed factory readings, due Sept. 19, for clues about the Institute for Supply Management figures on U.S. manufacturing. The national report is scheduled for release Oct. 1.
To contact the reporter responsible for this story: Victoria Stilwell in Washington at Vstilwell1@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at email@example.com