Empire state index jumps to 10.0 in Feb.
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — Manufacturing activity in the New York region expanded for the first time in seven months, according to data released Friday, raising fresh hopes of new momentum in the factory sector.
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The Empire State index jumped to 10 in February from negative 7.8 in the prior month, according to the manufacturing survey released by the New York Federal Reserve.
The improvement was much bigger than expected. Economists surveyed by MarketWatch had expected the index to remain in contractionary territory at negative 2.
In the survey, 29% of respondents reported conditions were improving, while 19% reported that conditions had worsened.
The Empire State data are watched closely because they are the month’s first reading of the health of the manufacturing sector.
Indicators of manufacturing activity have been mixed over the past few months
The key Institute for Supply Management factory index has mainly been above 50, the threshold for growth, except for a slight dip in November.
Details
In February, the new-orders index improved to 13.3 in February from negative 7.2 in January.
Shipments jumped to 13.1 in the month from negative 3.1 in January.
Unfilled orders, another forward-looking component, remained in negative territory.
Another bright spot in the report was an increase in a key barometer of future activity that asks manufacturers about expectations six months ahead. The forward-looking index rose to 33.1 in February from 22.4 in January. This is the highest level in almost a year.
The employment picture was mixed.
The index of the number of employees rose sharply in February to 8.1, but the average workweek remained below the zero line.
