- Amherst Pierpont Securities LLC
The factory survey in the New York area showed that activity in the manufacturing sector deteriorated in June. The Empire State Manufacturing Index calculated by the Federal Reserve Bank of New York fell to the negative territory this month, down from 3.1 points in May to –2.0 points this month. However, the majority of analysts surveyed were looking for a rise up to 6 points in the reporting month. The positive reading indicates improving conditions in the production sector of the New York state, while a reading below zero shows worsening conditions.
Along with production data from New York state, industrial production in the world's largest economy was published considerably worse than forecasted in May, therefore failing to lift the clouds about US economic development in the second quarter of 2015. The total output by American manufacturers, mines and utilities dropped by 0.2% last month, even though experts have foreseen a rise of 0.2%. The data follows a downwardly revised data for April, when industrial production plummeted by 0.5%, down from a 0.3% drop that was initially anticipated. Meanwhile, capacity utilisation, which is closely interconnected with the mentioned production data, was down to 78.1% in the month of June, a decrease from 78.3% seen in the preceding month.
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