Washington (awp/afp) – Manufacturing activity in the highly industrialized New York region of the northeastern United States turned positive in November, recovering growth after three months of declines, but companies surveyed remain pessimistic about the upcoming months.
The index measuring this activity has jumped 14 points since October to 4.5 points, according to the Empire State Monthly Survey, released Tuesday by the New York Fed and conducted among the region’s industrialists.
This index thus returns above zero, a sign that activity is growing, and surprises analysts, who expected a further decline in activity.
In detail, “new orders decreased slightly, while shipments increased slightly”, underlines the regional branch of the US central bank. Delivery times have remained stable, but stocks “have increased significantly”.
On the employment front, “the indicators point to solid growth in employment and a longer average working week”.
On the other hand, the index is mixed on the inflation side, as the prices of raw materials and supplies “have increased at roughly the same pace as last month, while the increase in selling prices has accelerated”.
And the outlook is rather bleak, as “companies expect trading conditions to deteriorate over the next six months.”
The recession threatens the American economy, while the Fed, to fight inflation, tightens monetary conditions to curb consumption.
It raised its benchmark rate since March and is now between 3.75% and 4.00%, its highest level since January 2008.
Inflation, however, showed encouraging signs in October, slowing to 7.7% year-on-year from 8.2% in September, according to the benchmark CPI.
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