New York state manufacturers were “generally optimistic” in the six-month outlook component of the January Empire State Manufacturing Survey. The optimism comes in spite of the survey’s general business conditions index plummeting in January to -0.7, ending 18 months of positive readings, per the Federal Reserve Bank of New York’s Jan. 18 report. The survey’s index for […]
New York state manufacturers were “generally optimistic” in the six-month outlook component of the January Empire State Manufacturing Survey.
The optimism comes in spite of the survey’s general business conditions index plummeting in January to -0.7, ending 18 months of positive readings, per the Federal Reserve Bank of New York’s Jan. 18 report.
The survey’s index for future business conditions held steady at 35.1. The indexes for future prices paid and received both rose to record highs, the New York Fed said.
The capital-expenditures index climbed two points to 39.7, a multi-year high, and the technology-spending index held steady at 31.9, suggesting that firms plan “significant increases” in both capital spending and technology spending in the months ahead.
A positive index number indicates expansion or growth in manufacturing activity, while a negative reading shows a decline in the sector.
Current concerns
The January reading of -0.7 in the general business conditions index — based on firms responding to the survey — indicates business activity in New York “abruptly leveled off,” the Federal Reserve Bank of New York said in its Jan. 18 report.
The survey found 22 percent of respondents reported that conditions had improved over the month, while 23 percent said that conditions had worsened, the New York Fed said.
The index — the monthly gauge on New York’s manufacturing sector — had risen slightly to 31.9 in the December survey and had climbed 11 points to 30.9 in November.
Survey details
The new-orders index in January posted a “steep decline,” falling 32 points to -5.0, pointing to a “slight decline” in orders. The shipments index fell to 1.0, indicating that shipments were little changed.
The unfilled-orders index came in at 12.1. The delivery-times index held steady at 21.6, suggesting that delivery times “continued to lengthen significantly,” and inventories increased modestly.
The index for number of employees fell 5 points to 16.1, and the average-workweek index dipped to 10.3, indicating that firms increased employment and hours worked. The prices-paid index edged down 4 points to 76.7, and the prices-received index declined 8 points to 37.1, signaling “ongoing substantial increases” in both input prices and selling prices, though at a slower pace than last month, the New York Fed said.
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.