WASHINGTON (Reuters) - Factory activity in New York state was the slowest in more than a year in September, while a jump in U.S. import prices last month hinted at an uptick in imported inflation.
The New York Federal Reserve said on Wednesday its "Empire State" general business conditions index slipped to 4.14 in September from 7.10 in August. September's reading marked the lowest since July 2009 and was below market expectations for 8.0.
Separately, import prices increased 0.6 percent after rising by a revised 0.1 percent in July, the Labor Department said. Analysts polled by Reuters had forecast import prices rising 0.3 percent last month from a previously reported 0.2 percent gain in July.
Markets ignored the reports, focusing instead on developments on the foreign exchange markets, where the U.S. dollar jumped from a 15-year low against the yen on Wednesday after Japan intervened to sell the yen for the first time in six years.
Analysts were still encouraged that the New York state manufacturing index had not dropped below zero, which would have signaled a contraction in factory activity.
"The Empire manufacturing index was slightly weaker-than-expected, but did not fall below the zero line, further diminishing concerns about a double dip," said Jonathan Basile, an economist at Credit Suisse in New York.
The survey showed employment continued to improve.
Although import prices rose sharply in August, the annual increase of 4.1 percent was the smallest advance since November.
August's monthly rise reflected a 2.1 percent rise in the price of imported petroleum and petroleum products, the largest since April, after a 0.9 percent increase in July. Excluding petroleum, import prices rose 0.2 percent, reversing the prior month's 0.2 percent decline.
Prices of imported foods jumped 2.2 percent from a 0.1 percent rise in July. There were also increases in prices for industrial supplies and materials.
The Labor Department report showed export prices rebounded 0.8 percent last month after slipping 0.2 percent in July. Export prices were boosted by a 4.3 percent jump in food prices, the biggest rise in 14 months.
Analysts had expected export prices to gain 0.2 percent. Compared to August last year, export prices rose 4.1 percent.
(Reporting by Lucia Mutikani in Washington and Wanfeng Zhou in New York; Editing by Andrea Ricci)
