Hooded sweatshirts are displayed for sale at a Brooklyn Industries Inc.
WASHINGTON (MarketWatch) — A reading of New York-area manufacturing conditions retreated in July, in what could be a sign of the impact of Britain’s vote to leave the European Union on the U.S. economy.
The Empire State general business conditions index slipped to 0.6 in July from 6.0 in June, the New York Fed said Friday.
— New York Fed (@NewYorkFed) July 15, 2016
The index, on a scale where any positive number indicates improving conditions, was worse than the positive 6 forecast in a MarketWatch-compiled economist poll.
The index has been in a see-saw pattern over the past several months but has been generally showing improvement.
Over the past two years, manufacturing has been held down by the strong dollar.
After the June 23 Brexit referendum, the dollar jumped against the British pound. Economists said this might weigh on manufacturing sentiment and increased uncertainty among businesses in general.
In July, the new-orders component sank to negative 1.8 from positive 10.9, and the shipments index sank to 0.7 from 9.3.
The index for future business activity fell 5.6 points to 29.2 in July.
The Empire State index is the first of a wave of regional manufacturing reports, and generally economists pay closer heed to the Philadelphia Fed report, which comes out next week.
This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.
Recommended article from FiveFilters.org: Most Labour MPs in the UK Are Revolting.