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Business Title: Manufacturing in New York Area Expands Less Than Forecast as Orders Slide Manufacturing in the New York region expanded less than forecast in August as orders and sales declined for the first time in more than a year. The Federal Reserve Bank of New York’s general economic index rose to 7.1 this month from 5.1 in July. Economists forecast the measure would rise to 8, according to the median estimate in a Bloomberg News survey. Readings greater than zero signal expansion in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut. Slower consumer spending and less inventory rebuilding may restrain manufacturing after the industry led the economy out of the worst recession in seven decades. A cooling of growth overseas may also signal fewer orders to U.S. factories in coming months. “The manufacturing sector is beginning to cool off,” said John Herrmann, senior fixed income strategist at State Street Global Markets LLC in Boston. “The manufacturing sector has been a strong underpinning for GDP growth over the last five quarters. So, should that begin to moderate, as we think it will, we think GDP” will slow. Estimates of the 48 economists surveyed by Bloomberg ranged from zero to 12.3. Manufacturers account for about 6 percent of New York’s economy. Stock-index futures held losses after the report and Treasury securities rose. Futures on the Standard & Poor’s 500 Index fell 0.3 percent to 1,073.1 at 8:34 a.m. in New York. The 10-year Treasury note rose, pushing down the yield to 2.62 percent from 2.67 percent. Orders Decline The gauge of new factory orders decreased to minus 2.7 this month, the first decline since June 2009, from 10.1 in July. A measure of shipments fell to minus 11.5, the biggest drop since March 2009, from 6.3. The employment measure increased to 14.3 from 7.9, and the length of the average workweek climbed to 7.1 from minus 9.5. Factories nationally have added 183,000 workers to payrolls since the start of the year, according to Labor Department data. In July, they boosted payrolls by 36,000, while the factory workweek increased to 41.1 hours from 41 hours a month earlier. Today’s report showed an index of prices paid fell to 20 from 25.4 while prices received dropped to minus 2.9 from minus 1.6. The factory executives’ future outlook retreated to the lowest level since July 2009. The gauge measuring the outlook six months from now fell to 35.7 from 41.3 in July. ITT Corp., a maker of night-vision goggles, last month reported revenue for the second quarter that was below the analyst estimates in a Bloomberg survey. Not a ‘Steady State’ “This global economy is not in a steady state of equilibrium now,” ITT Chief Executive Officer Steven Loranger said on a conference call July 30. “We’ve seen a lot of short cycle volatility throughout our segments and throughout our geographies.” Manufacturers make up 11 percent of the economy and had benefitted from expanding world trade, inventory restocking and stronger corporate spending for new equipment. Recent reports suggest the need to rebuild inventories has faded and export demands may have peaked. “There’s been an increase in caution for the outlook,” David Semmens, an economist at Standard Chartered Bank in New York, said before the report. “Look for manufacturing to be less of an addition rather than a drag, so to speak, on the economy.” Fed policy makers last week voted to keep the benchmark interest rate at a record low and said the recovery was likely to be “more modest” than earlier anticipated. The central bank said in its policy statement that since its June meeting “the pace of recovery in output and employment has slowed. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth and tight credit.”
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#1. To: Brian S (#0)
Imaging how bad the real numbers are! You can't trust any of the numbers from the FED given they have a vested interest in keeping the ponzi scheme going at full speed.
Being a Democratic shill means you check your humanity at the door.
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