Empire State Survey: reviewed, slower growth than in June - Nomura

Analysts at Nomura's review of today's US data...

Key Quotes:

"The Empire State survey reported that business activity grew modestly in New York State in July, albeit at a notably slower pace than in June. The headline index fell 10pp to 9.8, below expectations (Nomura: 18.3, Consensus: 15.0). 

The new orders and shipment indexes fell 4.8pp to 13.3 and 11.8pp to 10.5, respectively, suggesting slower growth in the month. 

Regarding expectations, the 6-month forward looking indicator fell 6.8pp to 34.9 but remained high, pointing to continued optimism. However, employment indicators suggest some slowdown in hiring activity. 

The number of employees index fell 3.8pp to 3.9 and while the average workweek index dropped 8.5pp to 0.0. The input prices and selling prices indexes increased at a similar pace as last month. 

The prices paid index rose slightly to 21.3, while the prices received index was little changed at 11.0, indicating steady price increases. Note that the Empire State survey has been volatile in recent months. 

We will have more clarity on business sentiment through the Philly Fed survey this Thursday."