Show an ad over header. AMP

I am the FIRST

New York manufacturing activity growth decelerated sharply this month

Date: New York Fed; Chart: Axios Visuals

Manufacturing activity growth decelerated sharply in New York.

Why it matters: The slowdown could signal a reaction to the growing spread of the Delta variant. And activity in New York generally moves in tandem with other regions of the U.S.

State of play: The Empire State Manufacturing Survey, which tracks activity in New York, is the first of a series of monthly manufacturing reports published by the regional Federal Reserve banks.

  • The August surveys are of particular interest because they occurred amid a spike in COVID infections, the impact of which was not fully captured in the July economic reports.

By the numbers: The survey’s general business conditions index plunged to 18.3 in August from 43.0 in July. A positive number signals growth, but the drop represents a sharp deceleration in activity.

  • This August print was much worse than the 28.0 expected by economists.
  • The shipments, employment and new orders subindexes all deteriorated significantly.

What they’re saying: "The weakening in the Empire State survey data in August could have been some payback from the very strong July data," JPMorgan economist Daniel Silver says.

  • "The survey also could be picking up a response to recent virus-related developments," he adds.

What to watch: For more up-to-date color on manufacturing activity, the Philadelphia Fed’s survey will be released on Aug. 19, the Richmond Fed’s on Aug. 24, the Kansas City Fed’s on Aug. 26, and the Dallas Fed’s on Aug. 30.

  • "We expect constraints on pandemic-stricken supply chains and labor markets to gradually ease in the coming months, but these headwinds risk staying strong amid the rapid spread of the Delta variant," Oxford Economics lead U.S. economist Oren Klachkin said in a report.

Why the startup world needs to ditch "unicorns" for "dragons"

When Aileen Lee originally coined the term "unicorn" in late 2013, she was describing the 39 "U.S.-based software companies started since 2003 and valued at over $1 billion by public or private market investors."

Flashback: It got redefined in early 2015 by yours truly and Erin Griffith, in a cover story for Fortune, as any privately-held startup valued at $1 billion or more. At the time, we counted 80 of them.

Keep reading... Show less

Scoop: Facebook's new moves to lower News Feed's political volume

Facebook plans to announce that it will de-emphasize political posts and current events content in the News Feed based on negative user feedback, Axios has learned. It also plans to expand tests to limit the amount of political content that people see in their News Feeds to more countries outside of the U.S.

Why it matters: The changes could reduce traffic to some news publishers, particularly companies that post a lot of political content.

Keep reading... Show less

Scoop: Amazon quietly getting into live audio business

Amazon is investing heavily in a new live audio feature that's similar to other live audio offerings like Clubhouse, Twitter Spaces and Spotify's new live audio platform, sources tell Axios.

Why it matters: As with Amazon's efforts in podcasting and music subscriptions, the company sees live audio as a way to bolster the types of content it can offer through its voice assistant, Alexa, and its smart speaker products.

Keep reading... Show less

Hurricane Ida exposes America's precarious energy infrastructure

The powerful hurricane that plunged New Orleans into darkness for what could be weeks is the latest sign that U.S. power systems are not ready for a warmer, more volatile world.

The big picture: “Our current infrastructure is not adequate when it comes to these kinds of weather extremes,” Joshua Rhodes, a University of Texas energy expert, tells Axios.

Keep reading... Show less

"We must go further": 70% of adults in European Union are fully vaccinated

About 70% of adults in the European Union are fully vaccinated against COVID-19, Ursula von der Leyen, the president of the European Commission, said Tuesday.

Why it matters: The milestone makes the E.U. one of the world's leaders in inoculations, after an initially lagging vaccine campaign, the New York Times notes.

Keep reading... Show less

What Elizabeth Holmes jurors will be asked ahead of fraud trial

Jury selection begins today in USA v. Elizabeth Holmes, with the actual jury trial to get underway on Sept. 8.

Why it matters: Theranos was the biggest fraud in Silicon Valley history, putting both hundreds of millions of dollars and thousands of patients' health at risk.

Keep reading... Show less



Get Goodhumans in your inbox

Most Read

More Stories