The Empire State Manufacturing Survey general business-conditions index rose 10 points to -6.0 in June, an improvement but still indicative of contraction in manufacturing activity in New York state. The general business-conditions index is the monthly gauge of New York’s manufacturing sector. Based on firms responding to the survey, the June reading indicates manufacturing business […]
The Empire State Manufacturing Survey general business-conditions index rose 10 points to -6.0 in June, an improvement but still indicative of contraction in manufacturing activity in New York state. The general business-conditions index is the monthly gauge of New York’s manufacturing sector. Based on firms responding to the survey, the June reading indicates manufacturing business activity “declined modestly” in the state, the Federal Reserve Bank of New York said in its June 17 report. A negative reading on the index shows a decline in the sector, while a positive number points to expansion or growth in manufacturing activity. The survey found “new orders held steady, while shipments inched higher,” the New York Fed said. It also found optimism on the six-month outlook “picked up to its highest level in more than two years.”
Survey details
The new-orders index climbed 16 points to -1.0, suggesting orders were “flat,” while the shipments index moved up to 3.3, pointing to a “small increase” in shipments, the New York Fed said. Unfilled orders held steady. The inventories index came in at 1.0, indicating that inventories were level. The delivery-times index remained below zero at -4.1, suggesting that delivery times shortened, while the supply availability index was -1.0, indicating supply availability was little changed. The index for number of employees came in at -8.7 and the average-workweek index fell to -9.9, pointing to an “ongoing decline” in employment levels and hours worked. The prices-paid index retreated 4 points to 24.5, and the prices-received index declined 7 points to 7.1, its lowest level in about a year, indicating that price increases continued to moderate. Firms were more optimistic about the outlook than they have been in more than two years, the New York Fed said. The index for future business conditions climbed 16 points to 30.1, with close to half of respondents expecting conditions to be better in six months. However, the outlook for employment growth “remained weak,” and capital spending plans “still appeared sluggish.” 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.