The headline General Business Conditions Index of the Federal Reserve Bank of New York's Empire State Manufacturing survey rose to 1.9 in September from -19.0 in August. This reading came in better than the market expectation of -10.0.
Manufacturing activity held steady in New York State, according to the September survey. Labor market indicators softened to -2.7 “indicating a slight decline in employment levels” and “optimism continues to grow” as the Future Business Conditions index rose to 26.3, the highest level in more than a year.
Key takeaways from the report:
Business activity was little changed in New York State, according to firms responding to the September 2023 Empire State Manufacturing Survey.
The headline general business conditions index rose twentyone points to 1.9. New orders and shipments increased.
Delivery times remained steady, and inventories continued to contract. Labor market indicators pointed to a slight decline in employment levels and the average workweek. The pace of input price increases was similar to last month, while selling price increases picked up.
Looking ahead, firms continued to grow more optimistic about the sixmonth outlook
The prices paid index held steady at 25.8, pointing to little change in the pace of input price increases, while the prices received index rose seven points to 19.6, signaling a modest pickup in the pace of selling price increases.
Market reaction
The US Dollar gained momentum after the report and strengthened against a broad range of currencies, reversing earlier losses. The US Dollar Index (DXY) rebounded to the 105.40 area, reaching levels near multi-month highs.
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