Manufacturing slower than expected

Manufacturing in New York state improved less than forecast this month, suggesting factories are guarded about boosting production or hiring to keep up with demand, a Federal Reserve survey showed yesterday.

The Federal Reserve Bank of New York’s index, which offers the first clues to the performance of US manufacturers during the month, rose to 19.8 from 17.4 in October. Readings above zero indicate expansion, and the Empire State survey is down from its first-half average of 33.4.

Shipments of goods accelerated this month, while new orders and hiring slowed, the survey showed, underscoring the view from Fed policy makers last week that “output appears to be growing at a moderate pace.”