New York Manufacturers See Slower Growth In February

(RTTNews) - Manufacturers in New York State reported slower growth in February, according to the results of a closely watched regional survey. The slowdown came as factories received fewer new orders and saw a significant slackening in the growth in shipments.

A report issued the Federal Reserve Bank of New York showed that its Empire State index, a measure of business activity in New York State, slipped to 4.48 for February. This was down from a reading of 12.51 for January.

Any reading above zero indicates expansion in the sector. January's decline suggests that manufacturing in New York State continued to expand during the month, but at a slower pace.

Economists had expected a slowdown in the month, but the consensus called for a more mild decline. Experts were looking for a reading on the Empire State index of about 8.5.

New orders actually declined during the period after showing growth in the previous month. The new orders index dropped to negative 0.21, down from a positive 10.98 reading in January.

Meanwhile, there was a substantial slowdown in shipment growth in February. The index slipped from January's mark of 15.52 to a reading of 2.13 in February.

There was a mixed result on the survey's prices components. An index measuring the prices that manufacturers pay for materials slipped from 36.59 in January to 25.00 in February. Meanwhile, an index measuring prices received by manufacturers edged up to 15.00 from 13.41.

The Empire State report is one of a number of regional manufacturing surveys that economists use to get a look a business activity in various parts of the country. Along with the Philadelphia Federal Reserve's Philly Fed index, which covers the mid-Atlantic region, the Empire State survey is one of the most closely watched of these.

Results for the Empire State report are compiled by sending surveys to 200 manufacturing executives in New York State.

For a look at factory activity in the nation as a whole, one of the most widely utilized reports is the Institute for Supply Management's manufacturing index.

The last ISM report, released in early February, showed slower growth in the month compared to January. The index slipped to 51.3 from the previous reading of 57.0, with any reading above 50 indicating expansion.

As with Tuesday's Empire State index, economists had expected a more mild decline. In the case of the most recent ISM result, experts were looking for the index to dip just a point to 56.0.

The next ISM manufacturing index is set to come out on March 3, covering activity for February.