The Empire State Manufacturing Index for June, published this afternoon , revealed a stark downturn in manufacturing output for New York. The wide gap between expectations and the actual figure are ominous for the American economic recovery considering growth has been more than a bit sluggish this past quarter.
The forecast for this afternoon's report was for a positive reading of 13, but actual results came in at negative 7.8. The turnaround from growth in New York's manufacturing to drastic shrinkage suggests a wider problem in consumer demand, rising inflation (Core CPI rose 0.3%; higher than economist forecasts), and transportation costs for raw materials with crude oil prices soaring. The index highlights an impending slow-down over the summer months and a likely dismal second quarter for manufacturing and industry.
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