Empire State Manufacturing Rebounds in October
Factory activity in New York returned to growth in October. The main index also rose into expansionary territory after weakening last month. This was driven by a rebound in new orders and increased deliveries, indicating demand was starting to improve at the end of the quarter. Company data also reported slightly longer delivery times than usual.
On the labor front, hiring slightly increased even though average working hours decreased slightly. Meanwhile, input costs and selling prices both rose faster, indicating that price pressures remained felt on the production line. This means that production momentum is improving, but companies are still passing on some of the increased costs to customers.
Looking ahead, manufacturer optimism strengthened: nearly half of respondents expect conditions to improve within a few months. This expectation typically arises when order books begin to fill and raw material supplies are considered relatively stable. However, capital expenditure plans remain "tight," so the sustainability of the rebound will depend on whether demand truly sustains and price pressures subside. (CP)
Source: Newsmakr.id
