New orders, shipments, and unfilled orders all declined at a “steeper pace” in October than in September, hurting manufacturers across New York. The Empire State Manufacturing Survey general business-conditions index registered a reading of -11.4, declining for a third consecutive month in October. However, the index did improve slightly from September’s -14.7 reading, […]
New orders, shipments, and unfilled orders all declined at a “steeper pace” in October than in September, hurting manufacturers across New York.
The Empire State Manufacturing Survey general business-conditions index registered a reading of -11.4, declining for a third consecutive month in October.
However, the index did improve slightly from September’s -14.7 reading, the Federal Reserve Bank of New York reported on Oct. 15.
The index has generated readings below -10 for three consecutive months for the first time since 2009, the New York Fed said.
The latest survey found that 21 percent of respondents reported that conditions had improved over the month, while 33 percent said that conditions had worsened.
The new-orders index indicated an “ongoing” decline in orders, falling six points to -18.9, a “multi-year” low, and the shipments index fell 6 points to -13.6, the New York Fed said.
The unfilled-orders index dropped seven points to -15.1.
Delivery times were shorter again in October, with the delivery-time index falling 5 points to -11.3.
The inventories index rose 11 points to -7.6, indicating that inventory levels declined, though at a “somewhat slower” pace than in September.
The prices-paid index fell to 0.9, its lowest level since 2009, suggesting that input prices were “flat.”
The prices-received index edged down three points to -8.5, indicating a decline in selling prices.
Labor-market conditions “worsened,” the New York Fed said.
The index for number of employees fell for a fourth consecutive month, slipping 2 points to -8.5 in a sign that manufacturers cut staffing levels.
The average-workweek index remained negative at -7.6, pointing to shorter workweeks for existing manufacturing workers.
Indexes for the six-month outlook were “little changed” from last month, and suggested that optimism about future business conditions remained “muted.”
The index for future business conditions held steady at 23.4, and the indexes for future new orders and future shipments stayed at similar levels.
At 27.4, the index for future prices paid showed that input prices were expected to increase, and the future prices-received index, at 7.6, suggested that selling prices were also expected to rise.
The index for expected number of employees rose to 10.4, indicating that respondents expected some increase in employment levels in the months ahead.
The capital-expenditures index was “little changed” at 12.3, and the technology-spending index edged up to 5.7.
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.