A record share of manufacturers in New York state raised prices for their products in early September, a survey released Wednesday showed.
The New York Fed’s Empire State index of prices received rose to 47.8, reflecting 50.4 percent of manufacturers saying they raised prices in the month and 2.6 percent saying their prices were lower. This is the third consecutive record high for this gauge.
The prices paid for materials was largely unchanged, slipping four-tenths of a percentage point to 75.7, near the record high. An overwhelming 76.5 percent of factories said they paid higher prices for materials and components in August.
Substantial increases in the months ahead are expected. The six-month ahead expectation for prices paid dipped nine-tenths of a percentage point to 51.3, with 56.5 percent of businesses saying they expect to charge more in the future. The expectations for prices paid declined but remain near historic highs, with the index falling 4.7 points to 61.7. The share of manufacturers saying they expect to pay more fell to 69.6 percent from 69.9 percent but the share saying they expect to pay less climbed from 3.5 percent to 7.8 percent.
The higher than expected inflationary pressures reflect an unexpected jump in demand and activities. The new orders metric rose 18.9 points to 46.5, a record high. The index of general business conditions soared 16 points to 34.3.
Economists had been expecting a reading below to August’s reading of 18.3.
The general business conditions index hit a record high of 43 in July but plunged steeply in August as the Delta variant triggered a surge in coronavirus infections.