New York manufacturing index turns positive in May

The Empire State Manufacturing Survey general business-conditions index increased four points to 3.1 in May from a -1.2 reading in April, the Federal Reserve Bank of New York reported Friday.

Back above zero, the index indicates expansion in New York’s manufacturing sector, but suggests that business conditions were “only slightly better over the [past] month,” the New York Fed in a news release.

The survey found 30 percent of Empire State manufacturer respondents reported that conditions had improved, while 27 percent said that conditions had worsened.

The reading of 3.1 also missed economists’ expectations for the index to hit 5.0 this month, according to Reuters.

Inside the report

The Empire State Manufacturing Survey’s new-orders index rose 10 points to 3.9, while the shipments index was “little changed” at 14.9.

Labor-market indicators pointed to a “small increase” in employment levels but a “slight decline” in the average workweek.

The prices-paid index fell 10 points to 9.4, its “lowest level in nearly three years.” The prices-received index edged down to 1.0, indicating that selling prices were “flat.”

The index for future general-business conditions fell “noticeably, reflecting a positive but less favorable” outlook than in April, the New York Fed said. That index fell 7 points to 29.8.

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