Producer Selling Price Gauge Hits Record High Even as Business Activity Softens: New York Fed

Business activity in New York State expanded at a significantly slower pace in August than in the prior month, even as input prices rose sharply and the pace of selling price increases set a record high, painting a picture of softening business conditions combined with high inflationary pressures. The New York Federal Reserve’s monthly Empire State Manufacturing Survey, released Aug. 16, showed that the headline general business conditions index fell 25 points to 18.3, indicating growth but significantly slower than last month’s record-setting pace. Readings above zero in any of the survey’s indexes—which cover areas like new orders, number of employees, and prices—indicate growth. The results are based on a monthly survey of around 200 top executives across various manufacturing industries, typically the president or CEO. Just over one-third of the respondents said overall business conditions had improved over the month, while 16 percent reported that conditions had worsened. But …

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