Bankinter | The Empire Manufacturing or New York Fed Manufacturing Activity Index (November) shows a mixed reading, although in expansion territory (>0). The current component improved unexpectedly to 18.7 against 5.8 expected and 10.7 previously, while the six-month outlook worsened to 19.1 against 30.3 previously.
Analysis team’s view: This indicator, which surveys 200 executives in the manufacturing sector in New York State, shows less optimism about the economy’s performance, although the components of prices paid and prices charged are declining, pointing to a moderation in inflationary pressures. A weakening outlook for manufacturing activity and moderating inflation are positive for the market, as they increase expectations of a possible rate cut by the Fed at its next meeting on 10 December.
