Reading still shows “robust growth in the industry” The Empire State Manufacturing survey general business-conditions index dipped more than 2 points to 22.6 in July from 25 in June, which was an eight-month high. The latest reading still indicates that manufacturing business activity “continued to grow at a fairly brisk pace in New York” in […]
Reading still shows “robust growth in the industry”
The Empire State Manufacturing survey general business-conditions index dipped more than 2 points to 22.6 in July from 25 in June, which was an eight-month high.
The latest reading still indicates that manufacturing business activity “continued to grow at a fairly brisk pace in New York” in July. That’s because a positive index number indicates expansion or growth in manufacturing activity, while a negative index reading shows a decline in the sector.
The July number is “still a high level, suggesting a continuation of robust growth,” the Federal Reserve Bank of New York said in its Empire State Survey report issued July 16.
The survey found 40 percent of New York manufacturing respondents reported that conditions had improved in June, while 17 percent said conditions had worsened.
Survey details
The new-orders index dipped 3 points to 18.2, while the shipments index fell 9 points to 14.6, “suggesting only a modest deceleration” in orders and shipments, the New York Fed said.
Unfilled orders leveled off, and inventories edged down. Delivery times continued to lengthen, “though by a narrower margin than in recent months.”
The index for number of employees slipped 2 points to 17.2. It had climbed to its highest level of the year in June, so the decrease pointed to “ongoing moderate growth” in employment, according to the New York Fed.
The average-workweek index fell 6 points to 5.6, suggesting “more modest” increases in hours worked than in recent months, the survey report said.
Price increases remained “widespread.” The prices-paid index retreated 10 points from last month’s measure, just below May’s multiyear high, but remained elevated at 42.7. The prices-received index was little changed at 22.2, signaling “ongoing moderate” rises in selling prices.
Optimism about the six-month outlook slipped in July. The index for future business conditions fell 8 points to 31.1, “essentially reversing” last month’s gain. Manufacturers continue to expect “fairly swift” increases in employment in the months ahead, and the indexes for future prices “remained elevated.”
The index for planned capital expenditures fell 10 points to 17.1, and the technology-spending index declined 8 points to 9.4 — both are at their lowest levels in roughly a year.
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 state. On average, about 100 executives return responses.