New York manufacturing index slips in September

The Empire State Manufacturing survey general business-conditions index fell nearly three points to 2.0 in September, still indicating moderate expansion in the sector’s activity.

This followed increases in the index in both August and July as it rebounded from a record decline in June. 

The September reading, based on firms responding to the survey, indicates “business activity was little changed in New York,” the Federal Reserve Bank of New York said in a Sept. 16 news release. 

Economists had expected an index number of 4.9, according to a Market Watch article, citing a survey by Econoday.

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

The survey found 27 percent of respondents reported that conditions had improved over the month, while 25 percent reported that conditions had worsened, the New York Fed said.

Survey details

The new orders index fell three points to 3.5, pointing to a small increase in orders. The shipments index fell four points to 5.8, its lowest level in nearly three years, the New York Fed said. 

The unfilled-orders index remained negative for a fourth consecutive month, indicating that unfilled orders “continued to decline.” Delivery times were steady, and inventories climbed.

After spending three months in negative territory, the index for number of employees rose to 9.7, pointing to an increase in employment levels. The average-workweek index came in at 1.7, indicating little change in hours worked. 

Prices increased at a “faster pace” than last month, the New York Fed said. The prices-paid index moved up six points to 29.4, and the prices-received index climbed five points to 9.2.

Indexes assessing the six-month outlook suggested that optimism about future conditions “waned.” 

The index for future business conditions fell 12 points to 13.7. The indexes for future new orders and shipments also moved lower. 

Firms expected increases in employment levels but no change in the average workweek in the months ahead. 

The capital-expenditures index plunged 19 points to 4.6, its lowest level in three years, and the technology spending index fell to 6.5, “also a multi-year low,” the New York Fed said.

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.