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Empire State index edges past forecasts in January

By Alexander Bueso

Date: Wednesday 15 Jan 2020

Empire State index edges past forecasts in January

(Sharecast News) - A closely-followed gauge of factory sector conditions in the jurisdiction on the Federal Reserve Bank of New York continued to outperform national manufacturing sector gauges like that from the Institute for Supply Management.
The so-called Empire State index edged up from a reading of 3.3 for December to 4.8 in January, edging past economists' forecasts for a rise to 4.0.

Wednesday's survey results only served to widen the gap in place versus the ISM measure, given the New York area's much lower exposure to the US-China trade war.

A key sub-index tracking firms' new orders improved by 6.6 points to 4.9 and another for unfilled orders rose by 11.1 points to -2.7.

But the largest increase was seen in the sub-index linked to the prices paid by firms, which climbed by 16.3 points to 31.5.

"NY state is not heavily exposed to Chinese trade, or to the worsening situation at Boeing, so the gap between the Empire State and ISM indexes likely will persist; it could easily widen in January as Boeing's suspension of 737MAX production kicks in," said Ian Shepherdson at Pantheon Macroeconomics.

"Overall, manufacturing remains soft, but Boeing aside it does not seem still to be deteriorating."

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