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Manufacturing in New York state grew faster than expected in November, as orders and employment surged, and a measure of selling prices reached its highest level since 2001.
The general business conditions indicator of the Federal Reserve Bank of New York increased to 30.9 from 19.8 a month ago, according to a study released Monday.
Expansion is indicated by figures above zero. In a Bloomberg poll of economists, the November figure outperformed all expectations.
There were few signals in the report that inflation was slowing down. The price index rose 7.3 points to 50.8, while the price index for materials paid rose to 83, the second-highest level on record.
Factory employment growth is also being fueled by strong demand, with the New York Fed’s measure jumping 8.9 points to a new high of 26. The average workweek increased as well. Delivery times grew longer, and the group’s shipment index reached a four-month high.
At the same time, manufacturers in New York state have lowered their expectations for the next six months. Nonetheless, estimates for capital expenditures in the coming months surged to their highest level since January 2018.
Story by : Norvisi Mawunyegah