The Empire State Manufacturing Survey general business-conditions index rose slightly to 31.9 in December from 30.9 the month before. The one-point gain in the index — the monthly gauge of New York’s manufacturing sector — follows an 11-point gain in November. The December reading — based on firms responding to the survey — indicates business activity […]
The Empire State Manufacturing Survey general business-conditions index rose slightly to 31.9 in December from 30.9 the month before.
The one-point gain in the index — the monthly gauge of New York’s manufacturing sector — follows an 11-point gain in November.
The December reading — based on firms responding to the survey — indicates business activity in New York “continued to grow strongly in New York State,” the Federal Reserve Bank of New York said in its Dec. 15 report.
A positive index number indicates expansion or growth in manufacturing activity, while a negative reading points to a decline in the sector.
The survey found 45 respondents reported that conditions had improved over the month, while nearly 13 percent indicated that conditions had worsened, the New York Fed said.
Economists had forecast an Empire State index number of 30.0 in December, according to a survey by The Wall Street Journal.
Survey details
The new-orders index and shipments indexes were both “little changed” at 27.1, pointing to another month of “strong growth” in both areas, the New York Fed said.
The unfilled-orders index rose 6 points to 19.0. The delivery-times index fell 9 points to 23.1, suggesting that delivery times “lengthened significantly, but less so than last month.” Inventories increased “modestly.”
The index for number of employees came in at 21.4, indicating a “solid increase” in employment, and the average-workweek index fell to 12.1, suggesting a “modest” increase in hours worked.
The prices-paid index edged down 3 points to 80.2, and the prices-received index fell 6 points to 44.6, signaling “ongoing substantial increases” in both input prices and selling prices, though at a slightly slower pace than in November.
Firms were generally optimistic about the six-month outlook, though optimism remained below levels seen in September and October, the New York Fed said.
The index for future business conditions held steady at 36.4. Longer delivery times, higher prices, and increases in employment are all expected in the months ahead, according to the New York Fed.
The capital-expenditures index climbed 3 points to 38.0, and the technology-spending index moved up to 31.4, suggesting that firms plan “significant increases” in both capital spending and technology 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.