Decrease in Manufacturing Activity in New York State

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Today, we are breaking down the June 2024 Empire State Manufacturing Survey to give you a comprehensive analysis of the current market conditions and what to expect in the near future.

Delivery Times and Supply Availability

While delivery times have shortened slightly, the supply availability index shows little change. This indicates that supplies are still readily available despite the slight improvement in delivery times.

Labor Market Conditions

The labor market is still struggling, with a decline in employment levels and a reduction in hours worked. These figures highlight ongoing weakness in the manufacturing sector’s labor market.

Price Movements

Price increases for inputs and outputs have moderated for the second consecutive month. This suggests a cooling off in inflationary pressures within the manufacturing sector, with both the prices paid and prices received indexes showing decreases.

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Optimism for the Future

Despite current weak activity, there has been a significant increase in optimism regarding the six-month outlook. This surge in future business conditions index indicates that nearly half of the respondents are expecting better conditions ahead, though the outlook for employment growth remains pessimistic.

Market Forecast

The June 2024 Empire State Manufacturing Survey presents a mixed outlook. While there are ongoing challenges in the near term, the rise in future business optimism suggests a potential turnaround in the latter half of the year. Traders should approach the current data cautiously, but the increasing optimism could signal a shift towards a more bullish market sentiment if upcoming data supports this positive outlook.

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