A record share of New York state manufacturers raised the prices of their products in early September, according to a survey released Wednesday.
The Empire State Price Index received from the New York Fed rose to 47.8, reflecting 50.4% of manufacturers saying they increased their prices during the month and 2.6% saying their prices were lower. This is the third consecutive record for this gauge.
Prices paid for materials were largely unchanged, slipping four tenths of a percentage point to 75.7, near the record. An overwhelming 76.5% of factories said they paid higher prices for materials and components in August.
Substantial increases are expected in the coming months. Price forecasts paid six months in advance fell nine-tenths of a percentage point to 51.3, with 56.5% of companies saying they expect to charge more in the future. Price paid expectations have fallen but remain close to all-time highs, the index falling 4.7 points to 61.7. The share of manufacturers saying they expect to pay more fell to 69.6% from 69.9%, but the share saying they expect to pay less fell from 3.5% to 7.8%.
Higher than expected inflationary pressures reflect an unexpected surge in demand and activity. The new orders metric rose 18.9 points to a record 46.5. The general business conditions index soared 16 points to 34.3.
Economists were expecting a lower reading than the August reading of 18.3.
The general business conditions index hit a record 43 in July, but fell sharply in August as the Delta variant triggered an increase in coronavirus infections.