New York Manufacturing Expands at Faster Pace as Prices Jump
(Bloomberg) -- Manufacturing in New York expanded in February by the most in five months as a growing number of factories in the state reported paying more for materials and charging higher prices.
The Federal Reserve Bank of New York’s general business conditions index increased to 12.1 from 3.5 a month earlier, a report Tuesday showed. Figures above zero indicate expansion, and the median forecast in a Bloomberg survey of economists called for a reading of 6.
Prices paid for materials rose 12.3 points to 57.8, while a gauge of prices received climbed 8.2 points to 23.4 -- both the highest since May 2011. More manufacturers also expect higher input costs and prices received in the next six months.
Delivery times also lengthened and unfilled orders increased as the pandemic continued to disrupt supply chains. The New York Fed’s gauge rose to 9.1 from 5.5.
The Empire State report is the first of several regional Fed manufacturing indexes to be released this month.
The bank’s gauge of new orders increased to 10.8 from 6.6, while a measure of the number of employees improved slightly to show more hiring and an increase in hours worked.
Optimism about economic conditions over the next six months increased among New York manufacturers. The regional Fed bank’s future index rose to 34.9 from 31.9.
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