New York Manufacturing Activity Expanded at Record-High Pace in July -- NY Fed

Manufacturing activity in New York accelerated sharply in July, growing at the fastest rate in at least two decades, according to a survey from the Federal Reserve Bank of New York released Thursday.

The Empire State Manufacturing Survey's general business conditions index increased to 43.0 in July from 17.4 in June, well above the reading of 17.3 forecast among economists polled by The Wall Street Journal. This is the highest level ever reached in the survey's history.

Any reading above zero suggests that the region's manufacturing sector is growing. The indicator has remained within expansion territory since July 2020.

"Manufacturing activity surged in New York State," the New York Fed said.

In July, 50% of respondents polled in the survey said conditions had improved in the month, while 7% reported that conditions had worsened compared with June.

Demand for goods rose sharply. The new orders index climbed 17 points to 33.2, and the shipments index increased 30 points to 43.8. Unfilled orders index also rose.

Supply strains hitting the manufacturing sector showed slight signs of abating but remained widespread. The delivery times index fell 10 points to 20.2, a reading that signals still long delivery times. The inventories index swung to expansion territory, signaling a considerable increase in inventories, the report said.

The index for number of employees rose eight points to 20.6, while the average workweek index held broadly steady at 14, indicating gains in both employment and hours worked.

Prices paid and prices received remained at or near record highs. The prices paid index eased slightly to 76.8, and the prices received index climbed further to a new record of 39.4.

Firms in the area remained optimistic that conditions would improve over the next six months.

The index for future business conditions fell eight points to 39.5, but it still signaled optimism among firms. The indexes for future new orders and shipments fell to similar levels, and the future employment index rose to a new-record high.

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com


  (END) Dow Jones Newswires
  07-15-21 0845ET
  Copyright (c) 2021 Dow Jones & Company, Inc.

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