New York manufacturing index rises in January

New York manufacturers are feeling a little more confident about business conditions in the new year, according to a new report. 

The general business-conditions index of the Empire State Manufacturing Survey, produced by the Federal Reserve Bank of New York, rose to 4.8 in January from 3.3 in December.

That beat market expectations for a reading of 3.55, according to the website fxstreet.com.

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

The New York Fed’s survey found 28 percent of respondents reported that conditions had improved over the month, while 23 percent said that conditions had worsened, according to the Jan. 15 report.

Survey details

The new-orders index rose nearly 5 points to 6.6, indicating that orders were higher. The shipments index was measured at 8.6, pointing to a “modest” increase in shipments, the New York Fed said. 

The unfilled-orders index improved by 11 points, but remained negative at -2.7, indicating that unfilled orders “continued to decline.” Delivery times shortened and inventories held steady.

The index for number of employees held steady at 9.0, indicating that employment expanded for the 5th consecutive month. The average-workweek index came in at 1.3, a sign that the average workweek was “essentially unchanged,” per the New York Fed.

Price increases picked up “noticeably.” After falling to a multi-year low last month, the prices-paid index rose more than 16 points to 31.5, and the prices-received index climbed over 10 points to 14.4.

Indexes assessing the six-month outlook suggested that optimism about future conditions “remained restrained.” 

The index for future general business conditions edged down 2.5 points to 23.6. The index for future shipments climbed nearly 5 points to 32.7, indicating that firms expect shipments to increase in the months ahead, and employment and hours worked are expected to grow “modestly.” 

The capital-expenditures index held steady at 25.3, and the technology-spending index moved down almost 5 points to 22.6.

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.