UPDATE 1-NY Fed’s Empire State index at highest since Oct

(Updates consensus estimates, adds comment, details)

NEW YORK, Feb 16 (BestGrowthStock) – A gauge of manufacturing in
New York state rose in February as inventories jumped, the New
York Federal Reserve said in a report on Tuesday.

The New York Fed’s “Empire State” general business
conditions index rose to 24.91 in February, the highest level
since October and up from 15.92 in January.

Economists polled by Reuters had expected a February figure
of 18.

Despite a stronger-than-expected headline reading, some
analysts said the details of the report are somewhat more
bearish.

“A lot of the improvement was driven by a correction of
inventories,” said Anna Piretti, senior U.S. economist at BNP
Paribas in New York. “It’s a temporary factor. What worried me
more was a sharp decline in new orders.”

The inventories index rose sharply, to 0.0, its highest
reading in more than a year.

But the new orders index tumbled to 8.78 in February from
20.48 in the previous month.

“This clearly indicates that some of the demand that we
hoped would sustain the recovery in manufacturing is not
there,” Piretti said.

Employment indexes were positive for a second consecutive
month, although at relatively low levels, the Fed said.

The expectations index for six months ahead slipped to
52.78 in February from 56.

Investment Research

(Additional reporting by Emily Flitter)
(Reporting by John Parry and Wanfeng Zhou; Editing by Theodore
d’Afflisio)

UPDATE 1-NY Fed’s Empire State index at highest since Oct