That’s despite improvement in new orders, shipments Even with improvements in new orders and shipments, respondents to a monthly measure of New York’s manufacturing sector remain pessimistic about the future. As for current conditions, the general business conditions index of the Empire State Manufacturing Survey dipped to -9.2 in May, declining for a third consecutive […]
That’s despite improvement in new orders, shipments
Even with improvements in new orders and shipments, respondents to a monthly measure of New York’s manufacturing sector remain pessimistic about the future.
As for current conditions, the general business conditions index of the Empire State Manufacturing Survey dipped to -9.2 in May, declining for a third consecutive month and showing contraction in the state’s industrial sector. The general business conditions index is the monthly gauge of New York’s manufacturing sector.
Based on firms responding to the survey, the May reading indicates business activity “continued to decline modestly” in New York state, the Federal Reserve Bank of New York said in its May 15 report.
A negative reading on the index indicates a decline in the sector, while a positive index number shows expansion or growth in manufacturing activity.
Survey details
The survey found the indexes for new orders and shipments climbed above zero in May as both increased after declining in April.
At the same time, firms remained pessimistic about the outlook, with the future general business conditions index “holding slightly below zero.”
In addition, the survey found the supply-availability index fell to -11.4, “suggesting supply availability worsened,” the New York Fed said.
The May survey found responding firms continued to expect conditions to worsen in the months ahead.
The index for future general business conditions remained below zero at -2.0. New orders and shipments are expected to edge lower, and firms expect to reduce capital spending over the next six months. Input price increases are expected to pick up, and supply availability is expected to “worsen significantly.”
The new orders index climbed above zero and, at 7.0, pointed to a modest increase in orders, the New York Fed said. The shipments index also turned positive, but only just so, and at 3.5, indicated a slight increase in shipments.
Unfilled orders edged up. The inventories index remained positive at 4.8, signaling that business inventories continued to move higher. Delivery times were steady, the survey found.
The index for number of employees came in at -5.1, and the average-workweek index was -3.4, pointing to a small decline in both employment and hours worked.
The prices-paid index climbed for a fifth consecutive month, rising 8 points to 59.0, its highest level in more than two years. The prices-received index retreated 6 points to 22.9, suggesting that selling-price increases slowed somewhat, 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.
