New York manufacturing index rises in August to highest level in nearly three years

The Empire State Manufacturing Survey general business-conditions index climbed 15 points in August to 25.2, its highest level since September 2014.

The index fell 10 points in July to 9.8 after rising 21 points in June to 19.8.

A positive reading indicates expansion or growth in manufacturing activity, while a negative reading on the index indicates a decline in the sector.

The results of the August survey indicate that business activity “grew strongly” for New York manufacturers, the Federal Reserve Bank of New York said in its news release issued Tuesday.

The survey found 42 percent of respondents reported that conditions had improved over the month, while 17 percent reported that conditions had worsened.

Survey details

The new-orders index rose seven points to 20.6 and the shipments index edged up to 12.4, pointing to “solid gains” in orders and shipments, the New York Fed said.

Delivery times “continued to lengthen,” and inventory levels “moved lower.”

Labor-market indicators pointed to an increase in employment and hours worked.

Input prices rose at a “faster clip” than last month, while selling prices rose at a “somewhat slower pace.”

Indexes assessing the six-month outlook suggested that firms were “very optimistic” 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

Visual / photo credit: Federal Reserve Bank of New York website