New York Manufacturing Activity Grows First Time Since February

Manufacturing activity in New York State expanded in July for the first time in five months, as the Empire State Manufacturing Index jumped to 5.5 from -16.0 in June, significantly outperforming expectations. The increase was driven by higher new orders, shipments, and employment, with the number of employees index rising to 9.2 and the average workweek also increasing. Inventories grew notably, while delivery times lengthened and supply availability continued to worsen. Despite a surge in input prices to 56.0, selling price increases remained moderate. Optimism among businesses improved, with the future general business conditions index climbing to 24.1, indicating expectations for continued growth in the coming months. Firms also showed increased capital-spending plans amid rising demand and cautious inflation concerns.