NEW YORK (Dow Jones)–Manufacturing activity in the New York metropolitan area fell in February, although by far less than expected and amid increasing price pressure. The Federal Reserve Bank of New York’s overall manufacturing activity index in the District increased to minus 2.4 (January: minus 43.7) points. Economists surveyed by Dow Jones Newswires had forecast an increase to minus 15.0.
A value above zero signals an expansion, a level below a contraction. The index provides a good insight into the situation assessments and six-month expectations of manufacturers in New York.
The index component for incoming orders rose to minus 6.3 (previous month: minus 49.4) points. The sub-index for employment increased to minus 0.2 (minus 6.9) points and that for prices to plus 17.0 (plus 9.5) points.
The New York Economic Index is usually the first regional indicator released by the Fed branches in a month. Economists view it, like the Philadelphia Fed indicator, as a comparatively reliable precursor to the widely respected ISM index for the US manufacturing sector.