A key monthly survey of New York manufacturers indicates the state’s manufacturing activity declined in the most-recent month. The Empire State Manufacturing Survey general business-conditions index slipped into negative territory in August, declining 5 points to -4.2. A negative reading indicates a decline in manufacturing activity, while a positive number on the index signals expansion […]
A key monthly survey of New York manufacturers indicates the state’s manufacturing activity declined in the most-recent month.
The Empire State Manufacturing Survey general business-conditions index slipped into negative territory in August, declining 5 points to -4.2.
A negative reading indicates a decline in manufacturing activity, while a positive number on the index signals expansion or growth in the sector, the Federal Reserve Bank of New York said in a news release issued Aug. 15.
The headline general business-conditions index has been bouncing above, below, and near zero for the past few months — registering readings of 0.6 in July, 6.0 in June, and -9.0 in May.
The August survey found that 26 percent of manufacturing respondents reported that conditions had improved over the month, while 30 percent said that manufacturing conditions had worsened.
Inside the survey
The new-orders index rose 3 points to 1.0, suggesting that orders were “little changed.”
The shipments index advanced 8 points to 9.0, pointing to an increase in shipments.
The unfilled-orders index inched up to -9.3. The delivery-time index fell to -4.1, signaling shorter delivery times, and the inventories index remained negative at -4.1, “evidence that inventory levels were somewhat lower,” the New York Fed said.
The employment index climbed 3 points to -1.0, indicating that employment levels were “little changed,” and the average-workweek index rose to 2.1, pointing to a “slight” increase in hours worked.
The prices-paid index slipped 3 points but, at 15.5, indicated that input prices continued to rise at a “moderate” pace.
The prices-received index, at 2.1, suggested that selling prices moved slightly higher.
Indexes for the six-month outlook revealed that respondents remained optimistic about future conditions, though to a “lesser extent” than in July.
The index for future business conditions fell for a second consecutive month, dropping 6 points to 23.7.
Indexes for future new orders and shipments also edged lower.
Indexes for future employment and the average workweek were below zero, suggesting that firms expected employment and hours worked to decline in the months ahead.
The capital-expenditures index fell to 4.1, and the technology-spending index retreated to 5.2.
The New York Fed distributes the Empire State Manufacturing Surveyon 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.
Contact Reinhardt at ereinhardt@cnybj.com