· Excluding food and energy prices also rose much more than expectations for a 0.1% gain, driven by higher prices for passenger cars. Core producer prices were up 0.2% (AR) year to date.

· Energy prices surged 4.2% (15.3% AR, YTD). Gasoline prices jumped 10.9% (86.5% AR) and fuel oil prices were strong for the fourth consecutive month (72.6% AR, YTD). Residential gas prices also rose a strong 3.5% but the YTD gain was a relatively low 4.0% (AR). These energy product price series are NSA.

· Core finished consumer goods prices rose 0.6% (0.6% AR, YTD). Consumer durables prices jumped 0.8% on the rise in car prices. Gains in other consumer durables prices were relatively modest or negative. Core nondurable goods prices rose a firm 0.4% (1.4% AR, YTD) due to higher apparel prices. Capital goods prices rose 0.4% (-0.3% AR, YTD), the most for any month since October 1999.

· Food prices rose a firm 0.7% (-1.5% AR, YTD) following three consecutive months of decline.

· Intermediate goods prices were strong due to higher petroleum prices. Core intermediate prices rose just 0.1% for the second consecutive month (1.8% AR, YTD).

· Crude goods prices jumped (21.5% AR, YTD) reflecting higher energy prices. Other commodities prices reflected in the core crude price measure also surged reflecting higher scrap metals prices. 

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· Retail inventories (7.0% YTD, AR) surged, led by a 2.0% jump in motor vehicle inventories. Nonauto retail inventories (2.5% YTD, AR) rose strongly.

· Inventories of furniture & home furnishings rose 1.8% and have been steadily accumulating (12.0% YTD, AR) since September. Inventories at apparel stores (4.1% YTD, AR) also jumped 0.9%. At general merchandise stores (-1.1% YTD, AR), inventories rose a modest 0.2%.

· Overall business sales declined 0.5% (4.4% YTD, AR), the first monthly decline since May.

· The inventory-to-sales ratio rose slightly to 1.36 from a record low level.
  

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· Output in the manufacturing sector fell 0.7% (2.0% AR, YTD) and September's previously reported 0.2% decline was doubled. It was the third consecutive monthly decline in factory output.

· Sharply lower motor vehicle and parts output (5.2% AR, YTD) led the factory sector decline, off sharply for the second consecutive month. Output of furniture & fixtures fell 2.3% following an upwardly revised 1.0% September gain. Apparel output fell sharply for the second month in three

· Output of business equipment fell 2.0% (-3.8% AR, YTD) following a steep September decline.  Output of information processing equipment rose 0.1% after a sharp 0.5% September decline that was revised from a slight gain.

· Capacity utilization fell sharply to the lowest level since March. Capacity again rose 0.1% (1.0% AR, YTD) as it has since early last year.

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Prelim. Nov

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· The Empire State Manufacturing Survey is a monthly survey of manufacturers in New York State conducted by the Federal Reserve Bank of New York. Participants from across the state in a variety of industries respond to a questionnaire and report the change in a variety of indicators from the previous month. Respondents also state the likely direction of these same indicators six months ahead. April 2002 is the first report, although survey data date back to July 2001.

· Like the Philadelphia Fed Index of General Business Conditions, the Empire State Business Conditions Index reflects answers to an independent survey question, not components.

· Diffusion indexes for employment, new orders, and shipments improved. Indexes of prices paid and received both fell.

· For the latest Empire State Manufacturing Survey report, click here.

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