New York manufacturing growth is staying strong for June, according to a report (link opens as PDF) released today by the New York Federal Reserve.
Comprised of surveys from around 100 New York executives, The Empire State Manufacturing Survey attempts to determine whether certain components of manufacturing have experienced growth (positive number), or contraction (negative number). Investors watch New York manufacturing (and other regions, as well) as a possible signal of larger economic upswings or downturns.
For June, the survey's general business conditions index clocked in at 19.3 points, just above May's 19.0 reading. The New York Fed hasn't published numbers this high since 2010. Analysts were pleasantly surprised by the news, having expected a growth slowdown to 15.0 points.
Digging deeper, the continued strength in June's report came in all the right places. The all-important new orders component increased 8.0 points to reach 18.4, a four-year high. Shipments fell from 17.4 points to a still-strong 14.2, while unfilled orders stayed at -1.1. The inventories index increased 7.5 points to 9.7, a sign that New York manufacturers might be expecting more business to come.
Looking ahead, the index of general business conditions six months ahead fell 4.1 points to 39.9, but expectations for new orders expanded from 36.7 to 44.5.
With today's strong report, analysts will be keeping a close watch on Thursday's Philadelphia Federal Reserve report for another important taste of regional economic growth.