NEW YORK - manufacturing in the State of New York grew at its slowest pace in five months in may, while the U.S. manufacturers remained deeply pessimistic that buyers stayed away from the market, data published Monday showed.
But while the Federal Reserve Bank of New York reported that the General conditions of its index "Empire State" fell to the lowest level since last December, there is force underlying signs. A gauge of employment has increased to the higher for seven years, and economists said that the probable data suggest more of a soft patch in the recovery of a slowdown.
General business conditions index fell to 11,88 21.70 in April, below the expectations of economists 19.85.
The survey of plants in the State of New York is one of the first monthly milestones in U.S. factory conditions. Manufacturing has been among the strongest sectors that the claws of the U.S. economy returned to health, its progress closely watched as a gauge of the recovery.
The pace of new orders slowed the 22.34 17.19.
The price paid index rose to 57.69 63.05, the highest level since July 2008. About 70 per cent of respondents indicated the price increase and none reported declines, said the report.
"Manufacturers less than the region of New York improvement overall in May that reported in April, but the details that underlie this decline, coupled with the relatively strong performance, in the component indices point on more than a pause in the pace of the expansion of a slowdown"Nicholas tenev"."Economist at Barclays Capital, wrote in a note.
Despite this, the technology and consumer discretionary stocks on Wall Street fell Monday as investors fretted about signs of weakness in the economy.
Separate data from an industry group showed a sense of U.S. manufacturers remained unchanged at low levels in may as current seizures and the credit crunch kept the reluctant buyers into the market.
Index National Association of Home Builders/Wells Fargo Housing Market held in 16 years, the group said in a statement. Economists surveyed by Reuters had expected the index to rise to 17.
Readings below 50 builders average more see that favour poor market conditions; the index is not greater than 50 since April 2006. More prices exacerbated gasoline consumer anxiety, said the NAHB.
Housing remains one of the biggest thorns in the side of the economic recovery as widespread seized were pushed into the low price of real estate. A slow start in the spring sale hit season string of home renovation Lowe s Cos (low).(N) quarterly results and the company to cut its forecast for the year.
DEBT WOES
US Secretary of the Treasury Timothy Geithner, who Saturday, warned a new recession if Washington failed to borrow more, told Congress that it would begin to tap into the Federal pension fund Monday to free the borrowing capacity as the nation hit his 14.294 trillion dollars loan Cap.
The US Treasury will issue 72 billion dollars in bonds and notes Monday, pushing the right of the nation against its cap of borrowing at some time in the day, according to an official of the Treasury.
A report of the Council of the United States Treasury showed foreign cut their purchases of securities in long-term U.S. in March, and analysts said concern about public finances may have encouraged a shift to shorter assets dated from.
The uneven nature of the economic recovery were observed in the mixed picture of the index Empire State of the Fed New York, with some resistance to gauges of employment. The index for the number of employees rose from 23.08 24.73 the previous month. It is the highest level since May 2004. The index of the average employee workweek rose from 10.26 23.66.
Companies are also more optimistic about the months to come, although they expected to continue to rise at an entry-level price. Index of terms and conditions of business for the next six months increased to 52.69 47.44, whereas the price paid index rose to 56.41 68.82.
"I don't think not that it's too surprising to see some moderation in the manufacturing sector, given the weakness that we are witnessing at the end of the consumption", said Scott Brown, Chief Economist at Raymond James in St. Petersburg, Florida.
"Higher gasoline prices reduce real wages, so expect to see consumer spending slow."
The recent surge in the price of oil and other products led to concerns that it could hamper consumer spending while most economists believe that the impact will prove to be temporary.
But while retailer home renovation that Lowe reported results disappointing Monday as caution on economy tempered by consumer spending, results from retailer J.C. Penney (JCP).(N) eased fears that the price of gasoline high will lead to its buyers to be more frugal. Its quarterly earnings exceeded estimates and the company raised its profit for the year of the forecast.
No comments:
Post a Comment