ZT: New York Fed's Empire State Survey drops to -31.3
Neils Christensen Monday August 15, 2022 08:37
an excerpt:
Monday, the regional central bank said that its Empire State manufacturing survey's general business conditions index fell sharply to a reading of -31.3 in August, down from July’s reading of 11.1. The data missed expectations as economists were looking for the index to fall to 5.1.
Manufacturing in the New York Region has fallen to its lowest level since 2019 when activity ground to a halt at the start of the COVID-19 pandemic. The report said that this was, “the second largest monthly decline in the index on record, and among the lowest levels in the survey’s history.”
Some economists note that the surprise drop in manufacturing could revive fears that the U.S. economy is headed for a hard landing as the Federal Reserve tightens interest rates to cool inflation pressures.
However, the cooling activity is also leading to falling inflation pressures. The report said that the Prices Paid Index fell to 55.5, down from the previous reading of 65.3.