[July 15, 2011] DJ NY Fed's July Manufacturing Index -3.76 Vs -7.79 In June Tweet NEW YORK, Jul 15, 2011 (Dow Jones Commodities News Select via Comtex) -- By Michael S. Derby Of DOW JONES NEWSWIRES Manufacturing conditions in the district overseen by the Federal Reserve Bank of New York weakened again in July, amid moderating inflation pressures. The bank reported Friday in its monthly Empire State Manufacturing survey that its general business conditions index moved to -3.76, from -7.79 in June. Negative numbers indicate contractionary activity and as such, the July reading describes a slower pace of retreat for the current month. The index went negative in June for the first time since November of last year. "Although the general business conditions index inched up four points to -3.8 in July, it was negative for a second consecutive month, suggesting that business activity had weakened slightly," the report said. Other measures of factory activity also remained under pressure in July. The bank said its new orders index for July stood at a -5.45, from June's -3.61, while the shipments index was 2.22, from -8.02. Inventories contracted, with that index at -5.56 in July, from 1.02. With commodity and energy prices moderating, inflation seen in the New York Fed district cooled. The prices paid index for July was 43.33, from 56.12 the month before, while the price received index stood at 5.56, after June's 11.22. Factory operators added jobs in July, but just barely, with the employment index hitting 1.11, down from June's 10.20. The New York Fed report arrives at a time of concern for the economy, as observers and market participants are trying to determine whether a slowing in growth seen over the first half of the year will continue, or whether a better pace of activity will come back as the impact of bad weather, higher energy and commodity prices, and Japan's natural disaster fade. The report noted "future indexes bounced up after declining steeply in June--a sign that conditions were generally expected to improve over the next six months--but the level of optimism was well below the levels observed earlier this year." In special questions asked of survey respondents, the New York Fed found factory operators expecting better sales and hiring over coming months, amid "mixed" plans for capital spending. -By Michael S. Derby, Dow Jones Newswires; 212-416-2214; [email protected] (END) Dow Jones Newswires 07-15-11 0830ET [ Back To TMCnet.com's Homepage ]