Consumer price inflation was benign in April, while manufacturing in New York is contracting less than anticipated this month, two releases at 8:30 am indicate.
The Consumer Price Index remained unchanged in April, following a 0.1% decline in March. Core price ― which exclude volatile energy and food components ― advanced by 0.3% in the month, two-tenths more than expected, following a 0.2% increase in March.
The growth in core prices is a reflection of 0.4% increases in both vehicle prices and medical expenses, plus a 9.3% gain in tobacco products.
Over the past 12 months, headline CPI has fallen 0.7%, and core CPI has increased 1.9%, one-tenth below the Federal Reserve’s unofficial target rate.
Meanwhile, the Empire State Survey suggests manufacturing conditions in New York are contracting much slower than anticipated in May. The reading climbed to its highest reading since August at -4.6, following a -14.7 score in April and a record-low -38 in March.
“The future general business conditions index rose 11 points to 43.8, its highest level since late 2007,” the report said. “This index has shown a cumulative increase of more than 40 points over the past two months.”
John Herrmann, president of Herrmann Forecasting, said the NY report indicates that manufacturing is “healing and stabilizing.”
At 9:15 am, the nationwide Industrial Production report will either add or detract from that sentiment.