Empire State Manufacturing Contracts Less than Forecast But Outlook Deteriorates

Labor Market Stedy, Costs Climb Sharply Employment Was Largely Flat, with The Number of Employees Index at -2.6. However, FIRMS CUT BACK HOURS, AS SHOWN by the AVERAGE WORKWEEK INDEX Falling to -9.1. Pricing Pressures Picked Up Meaningfully: The Prices Paid Index Jumped to 50.8, and Prices Received ClimBed To 28.7 – The Fastest Pace of Price Increses Increases In Over Two This Signals A Renewed SQueeze On Margins and Potential Pass-Thuhhh Effects Downstream.

Future Expectations Fall Sharply The Index for Future General Business Conditions Plunged 20 Points to -7.4, ITS Second Lowest Level on Record. Future Orders and Shipments Also Moved Into Negative Territory, and Capital Expenditure Plans Were Flat. Supply Chain Concerns Intensified, with The Forward -Looking Suppply Availliness Index Droping to -18.0. At Same Time, Firms Anticipate Input and Output Prices to Continue Rising, Further Straining Outlook Confidentnce.

Market Forecast: Bearish While April’s Data Came in Above Expectations, The Broader Trend Remains Negative. Manufacturing in New York State is Still Under Pressure from Weak Demand, Tighhentering Supple, and Rising Costs. The Sharp Drop in Forward Indes Weight to A Bearish Short-Term Forecast for Regional Industrial Equities and Manufacting-Sensitive Assets.