UPDATE: Empire State manufacturing index retreats in July from two-year high

07/17/17 09:02 AM EDT

By Steve Goldstein, MarketWatch

Index slows to below-consensus reading of 9.8 in July

A reading of New York-area manufacturing cooled in July from a two-year high, according to data released Monday.

The New York Fed's Empire State manufacturing index (https://www.newyorkfed.org/medialibrary/media/survey/empire/empire2017/esms_2017_07_survey.pdf?la=en) fell to a seasonally adjusted reading of 9.8 from 19.8 in June. Economists polled by Econoday expected a reading of 15, on a scale where any figure above zero indicates improving conditions.

Readings in July for new orders, shipments, inventories, delivery times and number of employees all decelerated.

That said, the Empire State index has been positive for six out of seven months in 2017.

Manufacturing of late has showed some tentative signs of strength, helped by a recovery in the oil sector as prices have stabilized. Industrial production rose for the fifth month in June (http://www.marketwatch.com/story/industrial-production-climbs-for-fifth-month-in-june-2017-07-14), the Federal Reserve reported Friday.

That oil and gas recovery doesn't help the New York region much, however. According to the Energy Information Administration, New York is 23rd in energy output.

A similar survey conducted by the Philadelphia Fed is due for release on Thursday.

-Steve Goldstein; 415-439-6400; AskNewswires@dowjones.com

 

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07-17-17 0902ET

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