New York Fed Manufacturing Index Rises More Than Forecast

(C) Reuters. New York Fed Manufacturing Index Rises More Than Forecast

(Bloomberg) — A gauge of manufacturing in New York State jumped in June by the most in records back to 2001, adding to signs of stability in the economy as states reopen from coronavirus lockdowns.

The Federal Reserve Bank of New York’s general business conditions index advanced to minus 0.2 from minus 48.5 a month earlier, a report out Monday showed. The median projection in a Bloomberg survey of economists called for the overall gauge to improve to minus 29.6. Firms also grew more optimistic about future conditions.

A reading of zero is the dividing line between expansion and contraction and the measure in April dropped to an all-time low of minus 78.2. The Empire State report is the first of several regional Fed manufacturing indexes to be released this month.

The bank’s gauges of orders and employment climbed in June, while a measure of shipments picked up to a four-month high.

New York manufacturers also grew more upbeat about economic conditions over the next six months, with the regional Fed bank’s future index advancing to 56.5, the highest since October 2009. Measures of the outlooks for capital outlays and technology spending also showed expansion.

The report also contained good news for factory workers as more firms said they planned to add employees in the months ahead. The future employment index increased to 19 in June, the highest level in almost a year.

(Updates with outlook for capital spending, technology outlays in final paragraph.)

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