New York Fed's Factory Outlook Dims Even as Main Gauge Picks Up
The outlook for manufacturing in the New York region faltered in April even as a gauge of current conditions held up, the latest signal of growing headwinds to the U.S. expansion.
The Empire State survey of expectations six months ahead fell 17.2 points to 12.4, the lowest level in more than three years and the second lowest level since the recession, according to a Federal Reserve Bank of New York report Monday that also showed weaker outlooks for new orders and shipments. The main index rose from a nearly two-year low, climbing 6.4 points to a four-month high of 10.1.
The report follows a Philadelphia Fed report showing new orders remained weak in March while another survey by the central bank’s Dallas region showed a measure of new order volume slumped last month to a two-year low.
While the current reading on the Empire State survey showed improvement from the prior month, the dimmer outlook adds to signs that the manufacturing sector faces mounting pressures from weakening global growth amid uncertainties over trade policies.
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