NY Empire Industrial Confidence Index plunges unexpectedly to -31.8 points in May vs. 10.8 points in April

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Link Securities | The Empire State Manufacturing Index of manufacturing activity in New York, compiled by the New York Federal Reserve, unexpectedly slipped to -31.8 points in May, down from 10.8 points in April, and versus the expected reading of -3.75 points by the analyst consensus. The reading is the lowest in four months, pointing to a sharp drop in manufacturing activity in New York. New orders (-28.0 points vs 25.1 points; April) and shipments (-16.4 points vs 23.9 points; April) plunged after rising significantly in the previous month.

In addition, lead times shortened (-5.7 points vs 0; April) and inventories contracted (-12.3 points vs 8.2 points; April); and both employment (-3.3 vs -8.0; April) and hours worked (-3.5% vs -6.4% points; April) declined for the fourth consecutive month. At the same time, prices increased slightly (34.9 points vs 33.0 points; April) and capital consumption plans slowed their growth (to 0.9 points, their lowest reading in three years). Meanwhile, the six-month business conditions index rose only marginally to 9.8 points from 6.6 points in April, a sign that businesses expect a slight improvement in conditions over the next six months.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.