The Empire State Manufacturing Survey general business-conditions index fell 25 points to 18.3 in August. The decline nearly reversed the entire 26-point gain that the index — a monthly gauge on New York’s manufacturing sector — posted in July to reach a “record high.” The latest report also missed analysts’ expectations for a reading of 29.0, according […]
The Empire State Manufacturing Survey general business-conditions index fell 25 points to 18.3 in August.
The decline nearly reversed the entire 26-point gain that the index — a monthly gauge on New York’s manufacturing sector — posted in July to reach a “record high.” The latest report also missed analysts’ expectations for a reading of 29.0, according to Reuters.
Despite the decline, the August index number — based on firms responding to the survey — indicates business activity in New York “continued to expand … though growth was significantly slower than last month’s record-setting pace,” the Federal Reserve Bank of New York said in its Aug. 16 report.
A positive index number indicates expansion or growth in manufacturing activity, while a negative reading shows a decline in the sector.
The survey found more than one-third of respondents reported that conditions had improved over the month, while 16 percent said that conditions had worsened, the New York Fed said.
Survey details
The new-orders index fell 18 points to 14.8, still pointing to a “solid increase” in orders, while the shipments index tumbled nearly 40 points to 4.4, but still suggesting a “slight increase” in shipments, the New York Fed said. Unfilled orders rose.
The delivery-times index climbed to 28.3, indicating “significantly longer” delivery times, as has been the case for the past several months, per the New York Fed. Inventories edged higher.
The index for number of employees dipped 8 points to 12.8, and the average-workweek index dropped to 8.9, indicating a “modest increase” in employment and hours worked.
Both price indexes remained at or near record highs: the prices-paid index held steady at 76.1, while the prices-received index climbed 7 points to 46.0, setting a record.
The index for future business conditions climbed 7 points to 46.5, pointing to “ongoing optimism” about future conditions. The indexes for future new orders and shipments rose to similar levels.
Substantial increases in employment and prices are expected in the months ahead. The capital-expenditures index was little changed at 23.0, and the technology-spending index held steady at 15.0.
The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.
