NY manufacturing growth picks up in June, details weak

NY, June 18 – Growth in the New York state manufacturing sector picked back up in June, but the details were less encouraging as new orders and employment fell to their lowest levels in five months, a report from the New York Federal Reserve showed on Monday.

The New York Fed's "Empire State" general business conditions index rose to 7.84 from minus 1.43 in May, topping expectations for zero. A reading above zero indicates expansion.

But the forward-looking new orders index fell to the lowest level since January at minus 6.69 from minus 1.17, while inventories tumbled to minus 11.29 from minus 7.95.

Employment gauges also worsened. The index for the number of employees slipped to zero from 5.68 and the average employee workweek index dropped to minus 11.29 from minus 1.14.

U.S. stock index futures held their gains immediately following the data, with traders focused on the Federal Reserve's policy meeting later this week. The dollar extended gains against the yen and yields on U.S. Treasury securities briefly rose.

The outlook for firms was relatively resilient with the index of business conditions six months ahead edging down only slightly to 24.98 from 25.48.

The survey of manufacturing plants in the state is one of the earliest monthly guideposts to U.S. factory conditions.

 Reuters