Manufacturing growth in the state of New York dropped more than Wall Street forecast last month, a survey released on Monday showed.
The New York Federal Reserve’s Empire manufacturing index slid to 9.8 in July, from 19.8 in the previous month. Wall Street economists were looking for a reading of 15. Last month’s reading was the highest since September 2014.
While the figures tend to be highly volatile, they represent the latest patchy data point on how the economy has performed over the past two months. A reading on retail sales that was released last week badly missed expectations, and inflation has remained tepid.
That has posed a quandary for Fed policymakers who are keen to raise interest rates to avoid an overheating of the labour market.
The New York Fed queries business officials, who are asked to”respond to a questionnaire and report the change in a variety of indicators from the previous month”.