[ad_1]
The numbers: The New York Fed’s Empire State business conditions index, a gauge of manufacturing activity in the state, fell 20.1 points in August to negative 19, the regional Fed bank said Tuesday. This is the first negative reading since May.
Economists had expected a negative 1.4 reading, according to a survey by the Wall Street Journal.
Any reading below zero indicates contraction in activity.
Key details: The indexes for new orders and shipments dropped sharply in August. The index for new orders 23.2 points to negative 19.9. The shipments index fell 25.7 points to negative 12.3.
Price indicators increased in the month. but remained at relatively low levels. The average workweek dropped to negative 10.7.
On the other hand, a measure of expectations of six-months ahead rose 5.6 points to 19.9 in August, its highest level in more than a year. In addition, capital spending plans also firmed.
Big picture: The headline index has been volatile this year, falling below negative 24 three times before recovering. The index had recovered after hitting a reading of negative 31.8 in May.
The factory sector has been hurt by tighter lending standards, elevated borrowing costs and softening business demand.
Market reaction: Stocks
DJIA
SPX
were set to open lower on Tuesday. The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
rose to 4.23%, the highest rate of the year.
[ad_2]
Source link
