New York manufacturing activity has seen a notable rebound in the month of November, the Federal Reserve Bank of New York revealed in a report released on Tuesday.
The New York Fed said its general business conditions index surged to a positive 4.5 in November from a negative 9.1 in October, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to jump to a positive 5.0.
The rebound by the headline index partly reflected a turnaround by shipments, with the shipments index climbing to a positive 8.0 in November from a negative 0.3 in October.
The number of employees index also rose to 12.2 in November from 7.7 in October, indicating a faster pace of job growth.
On the other hand, the new orders index slid to a negative 3.3 in November from a positive 3.7 in October, suggesting a slight decrease in new orders.
The report also showed the prices paid index inched up to 50.5 in November from 48.6 in October, while the prices received index climbed to 27.2 from 22.9.
Meanwhile, the New York Fed said firms expect business conditions to worsen over the next six months, with the index for future business conditions falling to a negative 6.1 in November from a negative 1.8 in October.
“Although manufacturing activity returned to expansion, activity is expected to slow heading into 2023,” said Gurleen Chadha, U.S. Economist at Oxford Economics.
She added, “Weakening domestic demand, high inflation, elevated interest rates, and recessionary pressures are likely to constrain the sector’s advance.”
On Thursday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity in the month of November.
Economists currently expected the Philly Fed Index to inch up to a negative 6.2 in November from a negative 8.7 in October.
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