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NY Empire Mfg: Stronger Conditions, Stronger Prices

DATA REACT

The NY Empire State Manufacturing survey was stronger than expected in November, bringing with it further inflationary pressures.

  • The NY Empire State Mfg business conditions index was above consensus in Nov, up from 19.8 to 30.9 (survey 22).
  • The prices paid component increased to the second-highest on record with an immediate response in selling prices to the highest in twenty years of data.
  • Other areas more mixed, with strong labour market indicators and a minor improvement in supply-chains but a deteriorating six-month outlook.
  • The initial reaction saw a bear steepening in Tsys with relatively little response in shorter-end (2s/10s up 2bps to 106.5bp) and minimal response in DXY.

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