New York Manufacturing Index Indicates Slightly Slower Growth

Activity in the New York manufacturing sector saw a modest slowdown in the pace of growth in the month of September, according to a report released by the Federal Reserve Bank of New York on Friday.

The New York Fed said its general business conditions index edged down to 24.4 in September from 25.2 in August, although a positive reading still indicates growth. The index has been expected to drop to 19.0.

The modest decrease by the headline index came despite indications of accelerations in the pace of growth in new orders and shipments.

The new orders index climbed to 24.9 in September from 20.6 in August, while the shipments index rose to 16.2 from 12.4.

The report said the number of employees index also advanced to 10.6 in September from 6.2 in August, indicating a faster rate of job growth.

The prices received index also jumped to 13.8 in September from 6.2 in August, while the prices paid index climbed to 35.8 from 31.0.

Looking ahead, the New York Fed said indexes assessing the six-month outlook suggested that firms remained optimistic about future conditions.

The index for future business conditions dropped to 39.3 in September from 45.2 in August but remained firmly positive.