A “sharp reversal” in the indexes measuring new orders and shipments sent the monthly gauge of the state’s manufacturing sector back into negative territory. The Empire State Manufacturing Survey general business-conditions index plunged 36 points to -11.6 in May, pointing to contraction in manufacturing activity. The index had climbed by the same number of points to 24.6 […]
A “sharp reversal” in the indexes measuring new orders and shipments sent the monthly gauge of the state’s manufacturing sector back into negative territory.
The Empire State Manufacturing Survey general business-conditions index plunged 36 points to -11.6 in May, pointing to contraction in manufacturing activity.
The index had climbed by the same number of points to 24.6 in April.
The May reading — based on firms responding to the survey — indicates business activity dropped in New York, the Federal Reserve Bank of New York said in its May 16 report.
A negative index number shows a decline in the sector, while a positive reading indicates expansion or growth in manufacturing activity.
The survey found 20 percent of respondents reported that conditions had improved over the month, while 32 percent said that conditions had worsened, according to the New York Fed.
Survey details
The new-orders index fell 34 points to -8.8, and the shipments index plunged 50 points to -15.4, marking a “sharp reversal” for the two measures, both of which increased in April.
The unfilled-orders index fell to 2.6. The delivery-times index held steady at 20.2, pointing to “continued lengthening” in delivery times, and inventories increased.
The index for number of employees increased 7 points to 14.0, and the average-workweek index held steady at 11.9, indicating a “modest increase” in employment levels and the average workweek.
After reaching a record high last month, the prices-paid index fell 13 points to a “still elevated” 73.7, and the prices-received index edged down to 45.6, signaling “ongoing substantial increases” in both input prices and selling prices, though at a slower pace than last month.
As in April, firms expressed less optimism about the six-month outlook than they did earlier this year.
The index for future business conditions was little changed at 18.0. Increases in prices and employment are expected to continue in the months ahead. The capital-expenditures index fell to its lowest level in several months, the New York Fed said.
The Federal Reserve Bank of New York 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.