Forexpros – The New York Federal Reserve’s index of manufacturing conditions improved more-than-expected in July, as the employment index inched up, official data showed on Monday.
In a report, the Federal Reserve Bank of New York said that its general business conditions index rose by 5.1 points to 7.4 in July from 2.3 in June.
Analysts had expected the index to rise by 1.7 points to 4.0 in July.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The shipments index increased five points to 10.3, indicating a rise in shipments. The prices paid index declined for a fourth consecutive month, dropping twelve points to 7.4, its lowest level since mid-2009.
New orders, however, declined, as that index slipped into negative territory for the first time since November 2011, falling five points to -2.7.
Employment levels climbed higher, with the employment index rising six points to 18.5.
Future indexes were generally positive, but many continued to drift downward and suggested that the level of optimism about future conditions remains below the level earlier this year.
The Empire State index is of interest to traders primarily because it is seen as an early forecast of the national Institute for Supply management factory survey.
Following the release of the data, the U.S. dollar held on to gains against the euro, with EUR/USD shedding 0.33% to trade at 1.2208.
Meanwhile, U.S. stock future indices remained mildly lower. The Dow Jones Industrial Average futures pointed to a loss of 0.3% at the open, S&P 500 futures pointed to a drop of 0.3%, while the Nasdaq 100 futures pointed to a decline of 0.2%.
Forexpros
