Robert Besser
23 Jan 2023, 02:39 GMT+10
NEW YORK CITY, New York: In January, manufacturing in New York State sharply declined amidst declining orders and rising employment growth, indicating an ongoing weakness in the nation's factory output.
The results were highlighted in a survey from the New York Federal Reserve Bank, released this week, which provided an insight into the conditions of one of the sectors hardest hit by the Federal Reserve's fastest interest rate hikes since the 1980s.
The survey showed a drop in demand and improved raw material supplies slowing inflation at factory gates.
According to data from the Institute for Supply Management, US manufacturing has been shrinking since November 2022.
"A variety of manufacturing surveys have been weak across recent months, and the Empire State survey suggests that this weakness continued, or perhaps intensified, early this year," said Daniel Silver, economist at JPMorgan in New York, as quoted by Reuters.
This month, the New York Fed's "Empire State" index on current business conditions dropped to -32.9 from -11.2 in December, the lowest level since May 2020 and the fifth worst reading in its history.
Higher borrowing costs have stifled demand for goods, which are mostly bought using credit, while spending is also shifting back to services.
Manufacturing, which accounts for 11.3 percent of the American economy, has also been hurt by the US dollar's recent appreciation and declining global demand.
Due to collapsing orders and subsequent unfinished work, as well as factories reducing their hours for workers, employment growth in the region stalled in January, with a measure of number of employees falling 11.2 points to 2.8, the lowest level in more than two years.
"Manufacturing conditions in the US are deteriorating and the worst is likely ahead," noted Gurleen Chadha, US economist at Oxford Economics, as reported by Reuters.
Get a daily dose of Maine Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Maine Mirror.
More InformationIt remains a top priority for the business community. ...
Follow the StarTribune for the news, photos and videos from the Twin Cities and beyond. ...
For Durenberger, there was no higher honor in life than to be called upon by the people of Minnesota. ...
Funding special education should be lawmakers' top priority. ...
Reining in the deficit without increases in revenue is unrealistic. The challenge is doing so without curbing economic growth. ...
Three reasons the campaign probably has gone too far. ...
WASHINGTON D.C.: The US House of Representatives has passed a bill that limits the ability of US Energy Secretary Jennifer ...
BOSTON, Massachusetts: Russian businessman Vladislav Klyushin, who has ties to the Kremlin, has been accused of making tens of millions ...
TOKYO, Japan: In light of a tense security environment following Russia's invasion of Ukraine and Moscow's growing military cooperation with ...
DALLAS, Texas: Oil and gas pipeline operators are preparing to stockpile equipment following severe weather forecasts for the next few ...
WASHINGTON D.C.: As US lawmakers investigate the Chinese-owned video-sharing app TikTok, its Chief Executive, Shou Zi Chew, has confirmed that ...
TEHRAN, Iran: A gunman this week stormed the Azerbaijan Embassy in the Iranian capital, Tehran, and killed its security chief ...