Manufacturing in New York Area Expands Less Than Forecast
Manufacturing (EMPRGBCI) 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 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.
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.
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