New York manufacturing index declines in August

Still indicates slight growth in manufacturing activity     

After increasing “significantly” in July for the first time since the pandemic began, manufacturing activity in New York state grew only “slightly” in August.

The Empire State Manufacturing Survey general business-conditions index fell 14 points to 3.7 in August, “signaling a slower pace of growth than in July.”

The index had climbed 17 points in July to its first positive reading since February. 

The August survey number — based on firms responding to the survey between Aug. 3 and Aug. 10 — indicates business activity edged “slightly higher” in New York, the Federal Reserve Bank of New York said in its Aug. 17 news release. 

A positive reading indicates expansion or growth in manufacturing activity, while a negative index number points to a decline in the sector. 

The survey found 34 percent of respondents reported that conditions had improved over the month, while 30 percent said that conditions had worsened, the New York Fed said.

Survey details

The new-orders index fell 16 points to -1.7, indicating that orders “levelled off,” and the shipments index fell 12 points to 6.7, pointing to a “modest” increase in shipments. 

Delivery times were steady. Unfilled orders and inventories declined.

The index for number of employees edged up to 2.4, indicating that employment levels inched “slightly higher.” The average-workweek index fell four points to -6.8, pointing to a decline in hours worked. 

The prices-paid index was little changed at 16.0, signaling that input prices increased at about the same pace as last month. The prices-received index climbed above zero, indicating that selling prices increased for the first time since March.

The index for future business conditions moved down four points to 34.3, suggesting that firms remained optimistic about future conditions, though less so than the prior two months. The indexes for future new orders and future shipments posted similar readings, and firms expect to increase employment in the months ahead. 

The capital-expenditures index came in at 6.0, a sign that firms, “on net, planned small increases” in capital spending.

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.