The government shutdown may be slowing, but not yet reversing, growth in the New York manufacturing region. The Empire State index is holding over zero, at 1.52 to indicate a slight rate of growth in composite activity, down from September's 6.29.
But growth in the report's leading indicator -- new orders -- is accelerating slightly, from 2.35 and 0.27 in the prior two months to 7.75 which is the best reading since March.
Other details include a second solid month for shipments and very strong readings for 6-month expectations. Negatives include slowing in jobs growth and continued contraction in backlog orders. Price data show steady upward pressure for raw materials but very little pressure for finished goods.
The economic calendar is getting thinner day by day, putting regional surveys from the Federal Reserve suddenly in the spotlight. Today's report points to resilience and no significant shock effect, at least initially, from the government shutdown. The Philly Fed report, the most closely watched of all regional manufacturing surveys and which surged in September, will be posted on Thursday.
Source: The Wall Street Journal
But growth in the report's leading indicator -- new orders -- is accelerating slightly, from 2.35 and 0.27 in the prior two months to 7.75 which is the best reading since March.
Other details include a second solid month for shipments and very strong readings for 6-month expectations. Negatives include slowing in jobs growth and continued contraction in backlog orders. Price data show steady upward pressure for raw materials but very little pressure for finished goods.
The economic calendar is getting thinner day by day, putting regional surveys from the Federal Reserve suddenly in the spotlight. Today's report points to resilience and no significant shock effect, at least initially, from the government shutdown. The Philly Fed report, the most closely watched of all regional manufacturing surveys and which surged in September, will be posted on Thursday.
Source: The Wall Street Journal
