"Actual business activity is OK but firms remain anxious, perhaps waiting to see how the aftermath of the Brexit referendum affects their export business".
- Ian Shepherdson, Pantheon Macroeconomics
Manufacturing activity in the Empire State region reflected contraction in the eight month of the year, official data showed on Monday. The Empire State Manufacturing Survey, the New York Federal Reserve's gauge of activity in the region, came in at -4.2 points in August, compared to the 0.6 hike seen in the previous month, whereas market analysts pencilled in an acceleration to 2.1 during the reported period. After entering positive territory for the first time after eight months in March, the survey's index swung between positive and negative. The survey drove the US Dollar lower against most of the major currencies as well as added to concerns about the state of the US economy, following last week's surpassingly weak economic data.
Nevertheless, manufacturers expressed optimism about the US economy over the long-term. The reading is compiled from a survey of about 200 top manufacturing executives in New York State. The questionnaire seeks their opinion on the change in a number of business indicators from the previous month, and also the likely direction of these indicators six months into the future. A number below 0.0 points indicates contraction in the Empire State manufacturing region, while a number above indicates improving conditions.
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