Empire State manufacturing index rebounds but optimism fades

(Sharecast News) - Business activity for manufacturers in New York State unexpectedly rebounded in February, according to a survey out on Tuesday from the New York Federal Reserve, though optimism regarding the outlook waned. The closely watched Empire State manufacturing index, which tracks general business conditions for manufacturers across the state, jumped 18 points to 5.7 this month.

That was up from -12.6 in January and well ahead of the -1.0 reading expected by the market. This was the second-highest reading since April 2023, following a print of 20.2 in November.

The new orders index surged 20 points to 11.4 in February, while the shipments index rose 16 to 14.2 and the inventories index remained positive at 8.7.

Prices, meanwhile, rose for the second straight month with the prices paid index up 11 points at 40.2 - its highest in nearly two years. The prices received index was also 10 points higher at 19.6.

However, while firms still expected conditions to improve in the coming months, the index for future business activity fell 15 to 22.2 as "optimism about the outlook dropped noticeably", according to Richard Deitz, economic research advisor at the New York Fed.