Monday’s reports offered some encouraging news—but both require perspective
A survey released Monday found that manufacturing activity strengthened in New York State during August. Participating factories reported more orders and shipments, along with modest increases in employment and working hours.
The impressive headline comes with an important limitation. The Empire State Manufacturing Survey was based on responses from only 97 New York manufacturers. It does not identify which industries became busier or report the actual number of jobs added. The results are an encouraging early signal, but they should not be treated as proof that manufacturing is strengthening nationwide.
Home-builder confidence also increased slightly, rising from 34 to 35. But any reading below 50 indicates that more builders view conditions negatively than positively. High mortgage rates, construction costs and weak buyer traffic continue to keep the housing market stuck.
For prospective buyers, builders offering price reductions and other incentives may provide some negotiating room. Unfortunately, that does not mean homes have suddenly become affordable.
Resources
Read the August Empire State Manufacturing Survey from the Federal Reserve Bank of New York
View the August Housing Market Index from the National Association of Home Builders
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