New York manufacturing index turns negative in August

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 reading on the index signals expansion or growth in the sector, the Federal Reserve Bank of New York said in a news release issued Monday.

The survey found that 26 percent of respondents reported that conditions had improved over the month, while 30 percent reported that conditions had worsened.

The survey’s new-orders index remained near zero, a sign that orders were “little changed,” while the shipments index climbed eight points to 9.0, indicating that shipments “rose,” the New York Fed said.

Labor-market indicators pointed to “little change” in employment levels and hours worked.

The prices-paid index edged down to 15.5, suggesting that input price increases remained “moderate,” and at 2.1, the prices-received index reflected a “minute” increase in selling prices.

Forward-looking indicators suggested that firms expected conditions to improve over the next six months, although the level of optimism diminished for a second straight month.

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.

Contact Reinhardt at ereinhardt@cnybj.com