Monday, May 17, 2010

Empire State Manufacturing Index- 05.17.2010

I need a late pass for this one. This data came out at 08:30. Sorry for the delay. Numbers missed estimates significantly.

Via Bloomberg:

Manufacturing activity remains very strong in the New York region though it did slow from April's exceptionally strong pace. The Empire State index for May came in at 19.11, well above break-even zero to signal significant growth compared to April. The April index was 31.86, to indicate vast acceleration from March.

The key here is that May's numbers may be lower than those in April -- but that doesn't mean May is weak. New orders came in at 14.3 on top of April's 29.49 to extend a long run of monthly gains. Shipments, at 11.29, increased compared to April though the monthly rate of growth slowed. Hiring did not slow with the employment index up more than 2 points to a very strong 22.37. Negatives in the report include continued acceleration in input prices and continued draw down in backlog orders, the latter pointing to still abundant excess capacity.

A slowing in manufacturing activity would be no surprise given the strong rate of acceleration so far this year, a rate that reflects a base effect with the depth of the sector's prior decline. The Philadelphia Fed will issue its manufacturing report on Thursday.

Patrick M. Ambrus
Managing Partner
Analyze Capital LLC
Twitter: AnalyzeCapital

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