What is it?
Every month, the Federal Reserve Bank of New York surveys manufacturers from a variety of sectors about the changes in a set of indicators in the current month over the previous one, as well as the likely direction the indicators will take on over the next six months. The survey is sent to the same 200 companies each month, and about 100 surveys are returned. According to the New York Fed, no single sector dominates the survey results.
Interest rate watchers pay attention to the Index, because it is seen as an important backdrop indicator into the underlying health and speed of the economy. Bond markets don't mind seeing healthy economic growth, but if growth heats up too quickly, it puts upward pressure on interest rates, because of the inflation fears fast economic growth spawns. The Report also contains sub-indexes with clues on prices and inflation. Fed policymakers are said to watch the Index closely, making it a part of their decision making.
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