US: NY Fed Empire State Manufacturing Index jumps to 6.6 in June vs. -15.1 expected
|The headline General Business Conditions Index of the Federal Reserve Bank of New York's Empire State Manufacturing survey recovered to 6.6 in June from -31.8 in May. This reading came in better than the market expectation of -15.1.
“New orders inched up, while shipments grew strongly. Delivery times held steady, and inventories moved lower. Both employment and hours worked continued to contract, and input and selling price increases slowed considerably. Planned increases in capital spending remained weak. Looking ahead, firms became more optimistic about the six-month outlook”, the NY Fed noted in its publication.
Key takeaways:
“At -3.6, the index for number of employees remained negative for a fifth consecutive month, and the average workweek index also held below zero at -5.8, pointing to another monthly decline in employment and hours worked.”
“Price increases moderated significantly: the prices paid index fell thirteen points to 22.0, and the prices received index fell fifteen points to 9.0.”
“The index for future business conditions increased nine points to 18.9, its second consecutive monthly increase, suggesting firms have become more optimistic that conditions will improve over the next six months.”
“New orders and shipments are expected to increase modestly, and employment is expected to expand. After falling close to zero last month, the capital spending index increased only seven points to 8.0, suggesting that capital spending plans remained soft.”
Market reaction:
The US Dollar pulled back after the release of US economic reports that also included Retail Sales, Jobless Claims and the Philly Fed. The DXY printed fresh daily lows under 103.00 as US Treasury Yields declined further.
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