Conditions for New York manufacturers declined “marginally,” according to the Empire State Manufacturing Survey that the Federal Reserve Bank of New York released today.
After three months of modestly positive readings, the general business-conditions index fell four points to -1.4 in May, pointing to a slight deterioration in business conditions for New York manufacturers for the first time since January, according to the New York Fed.
About 25 percent of respondents reported that conditions had improved over the month, while 26 percent reported that conditions had worsened.
The Empire State Manufacturing Survey also indicates the new-orders index fell below 0, declining three points to -1.2. The shipments index was little changed, holding at zero in a sign that shipments were flat.
The unfilled-orders index declined three points to -6.8. The delivery-time index was unchanged at -3.4, and the inventories index fell three points to -8.0, suggesting a modest decline in inventory levels.
The prices-paid index fell eight points to 20.5, indicating that input prices were rising at a slower rate. The prices-received index remained close to its April reading at 4.6, pointing to a modest-yet-steady increase in selling prices.
Indexes for the six-month outlook were generally lower this month, indicating that optimism about future conditions had slipped.
The future general business-conditions index declined for a second consecutive month, dropping six points to 25.5 in May. The future new-orders index fell seven points to 28.8, and the future-shipments index fell 14 points to 25.2.
The Empire State Manufacturing Survey is distributed on the first day of each month to the same pool of about 200 manufacturing executives in New York. Typically, about 100 surveys are returned, according to the New York Fed.
Contact Reinhardt at ereinhardt@cnybj.com