Empire State Manufacturing index is a survey made by Federal Reserve Bank of New York and about 200 manufacturers in the New York area are being asked to respond questions related to the level of general business conditions, and the result is compared with the zero level. Values higher than the zero level should be interpreted as improving conditions, and values lower than the zero level should be viewed as deteriorating conditions.
This indicator is important because the New York manufacturing area is one of the most important in the United States and as such, the indicator is viewed as a benchmark for the whole manufacturing industry in the country.
Looking at the past six months data to interpret and we have only one month with values below the zero level, signaling deteriorating conditions, but then the pickup in the indicator was quite strong and that makes the dip lower in that one month to be considered of lower importance.
The most important things to take into consideration when looking at the Empire State Manufacturing Index are:
- Release date: monthly, around the middle of the current month;
- Release time: 12:30 GMT, during North American trading session;
- Second tier data;
- Market usually ignores it if actual not differing much from forecast.