Analysts at Nomura note that the New York Fed’s Empire State survey improved modestly by 2.1pp to 21.1 in October, slightly above expectations (Nomura: 21.0, Consensus: 20.0).
Key Quotes
“The details remain consistent with contemporaneous strength in the manufacturing sector, with a 12pp increase in the shipments index, and solid near-term momentum as the new orders index increased 6pp.”
“Both employment indicators moderated during the month with the number of employees index falling 3.3pp to 9.0 and the average workweek index declining 11.3pp to 0.2. Both the prices paid and prices received indices also fell slightly, suggesting some pullback in price pressures, but remained firmly in positive territory.”
“The forward-looking indicators were generally positive, but plans for capital expenditures declined for the second consecutive month. The capital expenditure index, at 16.0, sits at its lowest level since August 2017 (11.6), as the downward trend in capital spending plans continues. Note that our economic forecast assumes further moderation in capital expenditure plans in the light of continued trade tensions.”
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