In August, NY Factory Activity Increases to Near 3-Year High
This month factory activity in New York has climbed to highest level in almost three years. On Tuesday, August 15, the Federal Reserve Bank of New York announced that its Empire State manufacturing index skyrocketed from 9.8 in July to 25.2 in August. The reading for this month was the highest since September 2014.
In August, hiring, shipments and new orders all picked up. Also, factories believe that over the next six months the improvements in conditions will continue.
WRAL.com reports, “The index measures sentiment among firms in New York States, but is closely followed by economists because it provides an early read on factory output nationwide. American manufacturers have recovered from a slump in late 2015 and early 2016 caused by cutbacks in the energy industry and a strong dollar, which makes U.S. products costlier in foreign markets. The Commerce Department reported earlier this month that orders at U.S. factories shot up in June on strong demand for civilian aircraft. The Institute for Supply Management reported that American factories expanded in July for the 11th straight month.”
Since July 2016, 66,000 workers have been hired by factories, which is the largest gain in 12-months for close to a year and a half.
The Domino Sugar Refinery is a former refinery in the neighborhood of Williamsburg in Brooklyn, New York City. (Photo Credit: Wikipedia)
The Empire State manufacturing index skyrocketed from 9.8 in July to 25.2 in August.