The May report on Empire State manufacturing from the New York Fed disappointed, coming in at 3.1.
Expectations were for the reading to come in at 5, up from last month’s -1.2 reading, which showed a pullback in activity in the New York region.
According to the latest report, “business conditions improved slightly for New York manufacturers. The headline general business conditions index climbed four points to 3.1. The new orders index rose ten points to 3.9, and the shipments index was little changed at 14.9. Labour market indicators pointed to a small increase in employment levels but a slight decline
in the average workweek.”
And so while after last month’s decline in business conditions, May saw a bounceback though optimism is still lagging.
The report showed that the index for future general business conditions fell to 29.8, “suggesting a positive but less favourable outlook than last month.” Future employment readings also declined but still showed overall expectations for employment levels are expected to rise.
Here’s the latest chart showing the slight uptick in activity this month.