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Business Title: Manufacturing in New York Region Accelerates as Factories Drive Recovery June 15 (Bloomberg) -- Manufacturing in the New York region expanded in June at a faster pace, signaling factories are weathering the turmoil in financial markets and driving the economic recovery. The Federal Reserve Bank of New York’s general economic index rose to 19.6, an 11th consecutive month of growth and in line with the median forecast of economists surveyed by Bloomberg News. Readings greater than zero signal expansion in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut. Manufacturing gains, which helped pull out the world’s largest economy from the worst recession since the 1930s, will keep bolstering the expansion and spur hiring. While the need to replenish inventories may be less pressing in coming months, household spending and exports will continue to fuel production. “The manufacturing recovery is continuing at a pretty rapid pace into the middle of the year,” said Zach Pandl, an economist at Nomura Securities International Inc. in New York. “So far, we have seen no signs of spillover from Europe to the U.S.” Prices of goods imported into the U.S. fell in May, led by the biggest drop in petroleum costs since December 2008, a report from the Labor Department also showed today. The 0.6 percent decrease in the import price index was less than the median forecast of economists surveyed and followed a 1.1 percent gain in April. Prices excluding petroleum rose 0.5 percent for a second month, led by higher costs for capital goods and metals. Shares Rise Stock-index futures held earlier gains following the reports. The contract on the Standard & Poor’s 500 Index climbed 0.6 percent to 1,092.6 at 8:56 a.m. in New York. Treasury securities were little changed. Economists forecast the New York Fed’s index would increase to 20 this month from 19.1 in May, according to the median of 55 projections in a Bloomberg News survey. Estimates ranged from 15 to 25. Manufacturers account for about 6 percent of New York’s economy. The New York Fed’s gauge of new factory orders increased to 17.5 this month from 14.3 in the prior month. A measure of shipments climbed to 19.7 from 11.3. Employment Cools The employment measure decreased to 12.4 from 22.4, while the length of the average workweek increased. Forty-six percent of the manufacturers surveyed said they planned to increase investment in new equipment this year compared with last, more than double the 20 percent who predicted a gain in 2009, according to the results of a special question in the survey. “Manufacturing is still robust,” said David Semmens, an economist at Standard Chartered Bank in New York, who had forecast the Empire index would rise to 19.5. “Demand is still there, and the recovery is continuing.” Factories nationally have added 126,000 workers to payrolls since the start of the year, according to Labor Department data. Manufacturers boosted payrolls by 29,000 in May, a fifth consecutive gain, the workweek lengthened and the average amount of overtime climbed to the highest level in two years as production accelerated on factory floors. Today’s report showed an index of prices paid dropped to 27.2 from 44.7, while prices received also cooled. Debt Crisis The factory executives’ future outlook held up even as the European debt crisis intensified, hurting global stock markets. The gauge measuring the outlook six months from now fell to 40.7 from 42.1 in May. Some of the region’s companies reflect the growth in manufacturing. Pall Corp., a supplier of filters for drugmakers and refineries, reported third-quarter earnings that exceeded analysts’ estimates as sales increased. Full-year profit per share will be at the high end of Pall’s March projections, the Port Washington, New York-based company said. “The expected industrial recovery appears to now be firmly underway,” Chief Executive Officer Eric Krasnoff said in a statement on June 8. Among other regional surveys, economists surveyed by Bloomberg News project the Philadelphia Fed’s general economic index, to be released June 17, fell to 20 from 21.4 in May. Readings above zero for that measure also signal expansion. A Fed report tomorrow may show industrial production rose 0.9 percent in May, the 10th gain in the past 11 months, following a 0.8 percent increase in April, according to economists surveyed. Manufacturers make up 12 percent of the economy and are benefitting from a revival in household spending and expanding global economies. The biggest jump in consumer spending since 2007 and a 13 percent gain in business investment in business purchases of new equipment and software helped the economy grow at a 3 percent annual rate from January through March, the third straight quarter of expansion.
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#1. To: Brian S (#0)
Christ, this is like being under 100 foot flood waters, and cheering the fact the rain slowed down a tad....
Are you of the mind that things, in general, don't slow down before they stop? Or is this you funnin' us again? You sly dog you!!!!
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