Firms responding to October’s Empire State Manufacturing Survey exhibited optimism that points to expansion in the state’s manufacturing industry. The survey’s general-business conditions index climbed more than 19 points to 10.7 in October, representing its third positive reading in the past four months. The index had dropped 21 points to -8.7 in September, its first […]
Firms responding to October’s Empire State Manufacturing Survey exhibited optimism that points to expansion in the state’s manufacturing industry.
The survey’s general-business conditions index climbed more than 19 points to 10.7 in October, representing its third positive reading in the past four months. The index had dropped 21 points to -8.7 in September, its first negative measurement since June.
Based on manufacturers responding to the survey, the October reading indicates business activity “increased modestly” in New York state, the Federal Reserve Bank of New York said in its Oct. 15 report.
A positive index number indicates expansion or growth in manufacturing activity, while a negative reading on the index points to a decline in the sector.
The October Empire State Survey report’s results easily beat economists’ forecasts for a reading of nearly -2, according to Seeking Alpha.
The survey found new orders edged higher and shipments increased, the New York Fed said. Supply availability continued to “worsen somewhat,” and inventories were little changed.
Manufacturers grew more optimistic about the outlook, with close to half expecting conditions to improve in the months ahead.
Survey details
After plunging in September, both new orders and shipments increased, with the new-orders index rising to 3.7 and the shipments index climbing to 14.4.
The inventories index hit -1.0, indicating that business inventories were little changed. The delivery-times index rose to 3.9, and the supply-availability index came in at -10.7, pointing to somewhat longer delivery times and worsening supply availability, the New York Fed said.
The index for number of employees moved up to 6.2, suggesting employment increased modestly, while the average-workweek index remained negative at -4.1, suggesting a small decline in hours worked.
Both price indexes remained elevated and moved higher: the prices-paid index rose 6 points to 52.4, and the prices-received index climbed 6 points to 27.2.
The index for future general business conditions rose to its highest level in several months, suggesting that firms expect conditions to improve in the months ahead. New orders and shipments are expected to increase, and supply availability is expected to be little changed. Firms anticipate ongoing price increases. Capital-spending plans remained soft.
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 the state. On average, about 100 executives return responses.
