After reporting a significant turnaround in New York manufacturing activity in the previous month, the Federal Reserve Bank of New York released a report on Monday showing a pullback in the pace of growth in the month of July.
The New York Fed said its general business conditions index fell to 1.1 in July after surging to 6.6 in June, although a positive reading still indicates growth. Economists had expected the index to drop to zero.
The pullback by the headline index was partly due to a notable slowdown in the pace of shipment growth, as the shipments index tumbled to 13.4 in July from 22.0 in June.
On the other hand, the number of employees index jumped to a positive 4.7 in July from a negative 3.6 in June, returning to positive territory for the first time since January.
The new orders index also crept up to 3.3 in July from 3.1 in June, while the unfilled orders index slipped to a negative 8.8 in July from a negative 8.0 in June, indicating unfilled orders continued to decline.
The report also said the prices paid index slid to 16.7 in July from 22.0 in June, and the prices received index dropped to 3.9 in July from 9.0 in June.
Looking ahead, the New York Fed said firms expect conditions to improve but noted optimism remains muted. The index for future business conditions fell to 14.3 in July from 18.9 in June.
The Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity in the month of July on Thursday.
Economists currently expect the Philly Fed Index to climb to a negative 9.7 in July from a negative 13.7 in June, with a negative reading indicating contraction.
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