Increases in new orders, shipments led the way Increases in new orders and shipments were key factors as the Empire State manufacturing Survey general business-conditions index surged 21 points in June to hit 19.8, its highest mark since September 2014. The index had declined significantly in each of the prior two months, culminating with its […]
Increases in new orders, shipments led the way
Increases in new orders and shipments were key factors as the Empire State manufacturing Survey general business-conditions index surged 21 points in June to hit 19.8, its highest mark since September 2014.
The index had declined significantly in each of the prior two months, culminating with its dip into negative territory in May.
A positive reading indicates expansion or growth in manufacturing activity, while a negative index number points to a decline in the sector.
The results of the June survey indicate that business activity “rebounded strongly” for New York manufacturers, the Federal Reserve Bank of New York said in a news release issued June 15.
The survey found that 36 percent of manufacturer respondents reported that conditions had improved over the month, while 16 percent said that conditions had worsened.
Survey details
The new-orders index, which showed a decline in orders in May, jumped 23 points to 18.1, indicating that orders “increased markedly.”
The shipments index rose to 22.3, pointing to a “substantial” increase in shipments. The unfilled-orders index moved up to 4.6, and the delivery-time index was “little changed” at 5.4.
The inventories index rose to 7.7, a sign that inventory levels were higher.
Employment indexes remained positive, pointing to “continued modest growth” in employment levels and hours worked.
The index for number of employees edged down 4 points to 7.7, and the average-workweek index was little changed at 8.5.
The prices-paid index held steady at 20.0 in May, and the prices-received index rose 6 points to 10.8, pointing to a pickup in selling-price increases.
Indexes assessing the six-month outlook suggested that manufacturing firms “continued to expect” conditions to improve.
The index for future business conditions was little changed at 41.7, and the index for future new orders rose 9 points to 42.2.
Inventories were expected to be “slightly lower” in the months ahead, and employment was expected to “increase modestly.”
The capital-expenditures index rose to 20.8, and the technology-spending index was 11.5.
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.
