New York manufacturing index slips 4 points in November

Reading still indicates slight sector expansion

The Empire State Manufacturing Survey general business-conditions index fell 4.2 points to 6.3 in November, “pointing to a slower pace of growth than in October.”

This followed a 6.5-point decline in the index in October, which came after a more than 13-point jump in September. 

The November reading — based on firms responding to the survey — indicates business activity “expanded … though only slightly” in New York, the Federal Reserve Bank of New York said in its Nov. 16 report. 

A positive reading indicates expansion or growth in manufacturing activity, while a negative index number points to a decline in the sector. 

The survey found 31 percent of respondents reported that conditions had improved over the month, while 24 percent said that activity had worsened, the New York Fed said.

Economists had anticipated a November index reading of 13.5, according to MarketWatch, citing a survey by Econoday.

Survey details

The new-orders index fell 9 points to 3.7, indicating a “slight increase” in orders, and the shipments index fell 12 points to 6.3, the New York Fed said. 

Delivery times were little changed, while unfilled orders and inventories “continued to decline.”

The index for number of employees rose 2 points to 9.4, its highest level in nearly a year, indicating a “modest increase” in employment levels. After rising sharply in October, the average-workweek index fell 11 points to 4.8, its positive value signaling a small increase in hours worked. 

The prices-paid index was little changed at 29.1, a sign that input prices rose at the same pace as the prior month. The prices-received index moved up 6 points to 11.3, indicating a “pickup” in selling price increases, per the New York Fed.

The index for future business conditions held steady at 33.9, suggesting that firms remained optimistic about future conditions. 

The index for future new orders was positive but slightly lower than in October. Employment levels and the average workweek are expected to continue to increase in the months ahead. 

Indexes for future prices paid and prices received both picked up for a second consecutive month. 

The capital-expenditures and technology-spending indexes both climbed to 17.9, suggesting “ongoing planned increases” in spending on capital and technology.

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.