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Below is a chart and brief excerpt from today’s Market Situation Report written by Tier 1 Alpha. If you’re interested in learning more about the Hedgeye-Tier 1 Alpha partnership, there’s more information here. |
The New York Empire State Manufacturing Index for February 2024 shows a recovery to -2.4 from January's -43.7, though the sector still contracts. Modest declines in new orders and ongoing shrinkage in unfilled orders contrast with slight shipments and supply chain efficiency improvements. The labor market remains stable, with little change in employment and a slight decrease in work hours.
Rising input costs are notable, with prices paid (33 vs. 23.2) accelerating, and a corresponding increase in selling prices (17 vs. 9.5) suggests inflationary pressures. Firms express cautious optimism for the near future, but soft capital expenditure plans indicate hesitancy to invest amid economic uncertainty, reflecting the complex balance between recovery hopes and inflation concerns.
On balance, another regional manufacturing report shows signs of improvement, albeit from deeply depressed levels. One data point does not make a trend, but positive signs of life.
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