Manufacturing in NY Region Expands Faster

[jpak]

http://www.bloomberg.com/news/2012-01-17/manufacturing-in-new-york-fed-region-expands-at-faster-pace-than-estimated.html

Manufacturing in the New York region expanded in January at the fastest pace in nine months, reflecting improving orders, sales and employment.

The Federal Reserve Bank of New York’s general economic index rose to 13.5, the highest level since April, from a revised 8.2 in December. That gauge exceeded the median forecast of 56 economists surveyed by Bloomberg News, which projected an increase to 11. Readings higher than zero signal expansion among companies in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut.

Factories may keep driving the economic expansion as they maintain production to meet household and business demand. At the same time, the financial crisis in Europe and a weaker euro may slow purchases of American-made goods.

“It’s a reflection of improvement in demand,” said Millan Mulraine, a senior U.S. strategist at TD Securities in New York. “The pace of recovery has accelerated. We’re beginning to see signs that the economy is starting to build on the strong momentum that we saw at the end of last year.”

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