An indicator of manufacturing activity in the state of New York in the U.S. showed an acceleration of growth in January to its highest level in nine months, thanks to an improvement in new orders and employment, said the Federal Reserve Bank New York in a report released Tuesday.
The index of general business conditions “Empire State” of New York Fed rose to 13.48 from the revised figure of 8.19 in December, surpassing the 11.0 expected by economists.
It was the most since April 2011.
New orders rose to 13.70 from a revised 5.99, while inventories also rose from -3.49 to 6.59.
“This is consistent with the data series stronger than expected we saw late last year. It seems that we are seeing that continue in the new year,” said Robert Dye, chief economist at Comerica in Dallas.
“The economy seems to be stronger than we thought, but we must be vigilant about the risks outside the United States, especially those coming from Europe,” he added.
The survey of manufacturing plants in the state is one of the first monthly indicators on factory conditions in the United States.
The activity in the region has been growing steadily since October, after a drop in summer months, when the manufacturing sector slowed as a whole.
Financial markets showed little reaction to the data, as investors were focused on corporate earnings season, as well as positive economic data from Germany and China.
Employment indicators showed strength. The number of employees index rose to 12.09 from 2.33 and the average workweek index of employees rose from -2.33 to 6.59.
The manufacturers were also more optimistic about their prospects, with the index of business conditions six months rose to 54.87, its highest level since January, from 45.61.
Category: Business News