... The first of the regional Federal Reserve activity indicators, the Empire Manufacturing index, has been released and shows that manufacturing rose at a slower pace in the state of New York in August. The headline index declined to 14.7 from 25.6 failing to match consensus's expectation of a 20 print.
Among the sub-indices new orders dropped to 14.1 from 18.8 while shipments rose to 24.6 from 23.6. Both remain well above zero indicating expansion. Inventories, meanwhile, dropped to -14.8 from -3.4 showing a faster rate of contraction, while the average workweek expanded faster at 8, up from 2.3.
The July report on producer prices was also released and showed an increase of 0.1% m/m in the Producer Price Index (PPI) as expected. PPI rose 0.4% in June. The core PPI also rose as expected by 0.2%, the same as in June. This implies annual rates of change of 1.7% and 1.6% for the PPI and core PPI respectively.