Reply #34: NY Fed manufacturing unexpectedly weak in May [View All]

[UpInArms]

http://www.reuters.com/article/bondsNews/idUSN1521497120080515

NEW YORK, April 15 (Reuters) - A gauge of manufacturing in New York State contracted unexpectedly in May, the New York Federal Reserve said in a report on Thursday even though its measure of inflation hit a record high.

The New York Fed's "Empire State" general business conditions index fell to minus 3.23 in May from positive 0.63 in April.

The result was below economists' expectations for a reading of 0.0 in May. It was also the third time in four months it has been below zero.

U.S. stock index futures pared their gains after the Empire State release. The report coincided with weekly data on claims for jobless benefits, which were marginally above expectations.

Government bonds, which generally benefit from weak economic conditions and suffer from increasing inflation expectations, rose slightly after the reports.

The prices paid measure of inflation rose to 69.57 -- the highest since the start of the data series in July 2001. In April it was 57.29.

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