New York manufacturing index turns negative in May

The Empire State Manufacturing Survey general business-conditions index fell six points to -1.0 in May.

The index fell 11 points to 5.2 in April. It also declined two points in March after climbing 12 points in February to its highest level in more than two years.

The -1.0 figure is the survey’s first negative reading since October.

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

The results of the May survey indicate that business activity “leveled off” for New York manufacturers, the Federal Reserve Bank of New York said in its news release issued Monday.

The survey found 26 percent of respondents reported that conditions had improved over the month, while 27 percent said that conditions had worsened.

The percentage of respondents reporting improvement in conditions was down “roughly” 10 percentage points compared to the April survey, the New York Fed said.

The May index level followed the 5.2 reading in April, 16.4 in March, 18.7 in February, 6.5 in January, and 9 in December.

Survey details

The May new-orders index dropped to -4.4, suggesting a “small decline” in orders, the New York Fed said.

The shipments index edged down to 10.6, indicating that shipments increased at a “slightly slower pace” than in April.

Labor-market indicators pointed to a “modest” increase in both employment and hours worked, and input prices and selling prices rose at a “more moderate pace.”

Indexes assessing the six-month outlook were close to last month’s levels, and continued to convey a “high degree of optimism” about future conditions.

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