USA: New York manufacturing points to 2009-style recession
Today the manufacturing data of the "Empire state", that is of New York, were made public, and they were not encouraged, indeed, they are a cause for concern. New York's Empire State manufacturing index fell to -32.9 in January 2023, its lowest reading since May 2020, from -11.2 in December, and well below market expectations of -9. The reading indicated the fifth-worst contraction ever in business activity in New York state, as new orders (-31.1 versus -3.6 in December) and shipments (-22.4 versus 5, 3) have decreased substantially. Furthermore, delivery times remained stable (0.9 versus 1.9) and inventories (4.5 versus 3.7) increased. Employment growth stopped (2.8 vs 14) and the average working week shortened (-10.4 vs -4.5). In addition, input price increases slowed significantly (33 vs 50.5) and selling price increases also decreased (18.8 vs 25.2). Looking ahead, firms expect little improvement in business conditions over the next six months (8 vs 6.3).
Here is the graph that shows how this value is really very low, at the level of a deep recession, obviously apart from the strange period of the covid-19
At this point it is clear that the sentiment of production, especially on the East coast, is moving towards the negative, above all due to the mix of inflation and restrictive policy which is starting to affect the real economy, in conjunction with the economic slowdown in Europe which, obviously, is felt more on the East coast.
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The article USA: New York manufacturing points to 2009-style recession comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/usa-la-manifattura-di-new-york-indica-recessione-stile-2009/ on Tue, 17 Jan 2023 17:54:24 +0000.