The Empire State Manufacturing Survey general business-conditions index moved back into positive territory in February to 3.1. The index — the monthly gauge on New York’s manufacturing sector — had plummeted in January to -0.7, ending 18 months of positive readings including the 31.9 index number in December. The February reading — based on firms […]
The Empire State Manufacturing Survey general business-conditions index moved back into positive territory in February to 3.1.
The index — the monthly gauge on New York’s manufacturing sector — had plummeted in January to -0.7, ending 18 months of positive readings including the 31.9 index number in December.
The February reading — based on firms responding to the survey — indicates business activity “was little changed” in New York,” the Federal Reserve Bank of New York said in its Feb. 15 survey report.
A positive index number indicates expansion or growth in manufacturing activity, while a negative reading points to a decline in the state’s manufacturing sector.
The Empire State Survey found 34 percent of respondents reported that conditions had improved over the month, while 30 percent said that conditions had worsened, the New York Fed said.
Economists were expecting a stronger business bounce back to a reading of 10 for the general business-conditions index, according to a survey by The Wall Street Journal.
Survey details
The new-orders index came in at 1.4, and the shipments-index reading was 2.9, signaling little change in orders and shipments over the month, the New York Fed said.
The unfilled-orders index came in at 14.4. The delivery-times index was unchanged at 21.6, suggesting that delivery times “continued to lengthen significantly,” and inventories increased modestly.
The index for number of employees climbed 7 points to 23.1, indicating “solid gains” in employment levels, and the average-workweek index held steady at 10.9.
The prices-paid index was little changed at 76.6, while the prices-received index rose a steep 17 points to a record high of 54.1, signaling “ongoing substantial increases” in both input prices and selling prices, per the New York Fed.
Firms were generally optimistic about the six-month outlook, but optimism waned.
The index for future business conditions fell 7 points to 28.2, its lowest level since the early stages of the pandemic. Longer delivery times, higher prices, and increases in employment are all expected in the months ahead, the New York Fed said.
The capital-expenditures index remained near a multi-year high, suggesting that firms plan “significant increases” in capital 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.