Manufacturing activity in New York State contracted for the sixth consecutive month in May as demand remained weak, with input and sales price indicators slowing slightly.
The New York Fed's index of manufacturing overall business conditions fell 1% this month.Ddrarcademachine.3 o'clock to-15.6. A figure below zero indicates a contraction. Economists surveyed by Bloomberg had a median forecast of-10.
For more than two years, the data has fluctuated a lot from month to month. Recent data, in line with other indicators, suggest that US manufacturing is struggling to gain momentum as input prices rise.
Manufacturing conditions in New York remained depressed in May, with manufacturing activity and orders continuing to decline. Labor market conditions are also weak, with employment and working hours both declining, "Richard Deitz, an economic research adviser at the Federal Reserve Bank of New York, said in a statement."
New York state manufacturers' current index of paid prices for raw materials fell 5.4 points to 28.3, while the receiving price index fell 2.8 points to 14.1. A measure of the outlook for input prices rose.
Data released by the Institute for supply Management earlier this month showed that the paid price index rose to its highest level since mid-2022 in April, raising concerns that inflation could remain high.
The New York manufacturing new orders index was almost flat in May, at-16.5.DdrarcademachineThe current employment index shrank for the seventh month in a row, and the rate of contraction in factory shipments slowed.