The New York Fed’s manufacturing index rose sharply to 19.6, exceeding estimates and signaling stronger activity and inflation pressures.
The Empire State Manufacturing Index climbed to 19.6 in May, surpassing the 7.8 consensus estimate and April’s 11.0 reading. The jump reflects a broad improvement in business conditions, with new orders rising to 22.7 from 19.3 in April.
Prices paid surged to 62.6, the highest level in over a year, while prices received also increased to 31.8. Shipments and inventories showed mixed trends, with shipments dipping slightly and inventories rising. Employment softened modestly to 8.3 from 9.8.
The data suggests accelerating manufacturing activity in the region, alongside persistent inflationary pressures, which may influence monetary policy expectations.