N.Y. manufacturing index plunges back into negative territory

The benchmark index measuring manufacturing activity in New York state returned to negative territory in May.

The Empire State Manufacturing Survey’s general business-conditions index plummeted 43 points in the fifth month of the year to -31.8 as business activity “declined significantly,” according to a May 15 report from the Federal Reserve Bank of New York.

The index had climbed 35 points in April to 10.8 with an uptick in business activity after falling 19 points in March to -24.6. The general business-conditions index is the monthly gauge on New York’s manufacturing sector. 

The May reading — based on firms responding to the survey — indicates business activity “fell sharply” in New York state, the New York Fed said.

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

The May Empire State survey found 17 percent of respondents reported that conditions had improved over the month, while 49 percent said that conditions had worsened, the New York Fed said.

Survey details

The new-orders index collapsed 53 points to -28.0, and the shipments index plunged 40 points to -16.4, indicating that both orders and shipments declined after increasing in April. 

The unfilled-orders index fell to -13.2, a sign that unfilled orders were lower. The delivery times index dipped to -5.7, suggesting delivery times “shortened somewhat,” the New York Fed said. The inventories index fell to -12.3, indicating that inventories moved lower.

The index for number of employees remained negative for a fourth straight month at -3.3, and the average-workweek index held below zero at -3.5, pointing to a slight decline in employment and hours worked. 

The prices-paid index was little changed at 34.9, and the prices-received index held steady at 23.6, suggesting the pace of price increases was little changed.

The index for future business conditions edged up to 9.8, suggesting that firms do not expect activity to improve much over the next six months. 

New orders and shipments are expected to increase, and employment and the average workweek are expected to “edge somewhat higher.”

The capital-spending index fell to 0.9, its lowest level in three years, suggesting that capital spending plans “weakened,” and the technology-spending index fell to 1.9, the New York Fed said.

The Federal Reserve Bank of New York 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.