After declining in July, the Empire State Manufacturing Survey general business-conditions index soared 15 points in August to 25.2, its highest level in nearly three years. Economists had forecast an August index reading of 10, according to several media reports. The big increase comes after the index fell 10 points in July to 9.8, after […]
After declining in July, the Empire State Manufacturing Survey general business-conditions index soared 15 points in August to 25.2, its highest level in nearly three years.
Economists had forecast an August index reading of 10, according to several media reports.
The big increase comes after the index fell 10 points in July to 9.8, after rising 21 points in June to 19.8.
A positive reading indicates expansion or growth in manufacturing activity, while a negative index level points to a decline in the sector.
The results of the August survey indicate that business activity “grew strongly” for New York manufacturers, the Federal Reserve Bank of New York said in its report issued Aug. 15.
The survey found 42 percent of respondents reported that conditions had improved over the month, while 17 percent said that conditions had worsened.
Survey details
The new-orders index climbed 7 points to 20.6, pointing to a “solid increase” in orders, and the shipments index rose slightly to 12.4.
The unfilled-orders index held steady at -4.7.
The delivery-time index was “little changed” at 5.4, pointing to “somewhat longer” delivery times, and the inventories index fell to -3.1, indicating that inventory levels were “slightly lower.”
Labor-market conditions also improved. After retreating for the preceding three months, the index for number of employees rose 2 points to 6.2, pointing to a “modest rise” in employment levels.
The average-workweek index advanced to 10.9, indicating that the average workweek “lengthened.”
The prices-paid index rose 10 points to 31, a sign that input-price increases “picked up,” while the prices-received index fell 5 points to 6.2, suggesting that the pace of selling-price increases “moderated slightly.”
Optimism about the future
Indexes measuring the six-month outlook implied that firms were “very optimistic” about future conditions, the New York Fed said.
The index for future business conditions rose 10 points to 45.2, and the index for future new orders moved up 8 points to 41.3.
Employment was expected to increase “modestly,” though the average workweek was expected to decline “slightly.”
The capital-expenditures index slipped to 11.6, and the technology-spending index dipped to 9.3.
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.