New York manufacturers are indicating that they’re still struggling with new orders and shipments, leading to continued contraction in the sector. The Empire State Manufacturing Survey general business conditions index fell 7 points to -16.0 in June, with business activity for manufacturers declining for a fourth consecutive month. The June survey found that after rising […]
New York manufacturers are indicating that they’re still struggling with new orders and shipments, leading to continued contraction in the sector.
The Empire State Manufacturing Survey general business conditions index fell 7 points to -16.0 in June, with business activity for manufacturers declining for a fourth consecutive month.
The June survey found that after rising above zero the prior month, the new-orders index fell to -14.2, and the shipments index moved down to “around zero,” pointing to a decline in both orders and shipments, the New York Fed said in its June 16 survey report.
In the past few months, the benchmark general business conditions index dipped to -9.2 in May after rising 12 points but remaining below zero at -8.1 in April. The index fell 26 points to -20 in March. The general business conditions index is the monthly gauge of New York’s manufacturing sector.
Based on manufacturing firms responding to the survey, the June reading indicates manufacturing business activity “continued to decline” in New York state, the New York Fed said.
A negative index number points to a decline in the state’s manufacturing sector, while a positive reading indicates expansion or growth in manufacturing activity.
Outlook
However, the Empire State Survey found that manufacturers turned optimistic about the six-month outlook, with the future general business conditions index rising above zero for the first time since March, the New York Fed said. It jumped to 21.2 in June from -2.0 in May. The forward-looking new orders and shipments indexes also posted readings in the mid-20s in June, an improvement from negative readings in May.
Other survey details
Besides the declines in the indexes on current new orders and shipments, the survey also found that unfilled orders fell. The inventories index came in at around zero, signaling that business inventories “held steady,” the New York Fed said.
Delivery times were little changed, while the supply-availability index remained below zero at -8.3, suggesting that supply availability “continued to worsen.”
The index for number of employees rose 10 points to 4.7, its first positive reading since January and a sign that employment increased slightly. The average-workweek index came in at -1.5, suggesting little change in hours worked.
After reaching its highest level in more than two years in May, the prices-paid index fell 12 points to 46.8, suggesting that the pace of price increases “slowed but remained significant.” The prices-received index edged up 4 points to 26.6, suggesting that selling-price increases “accelerated somewhat.”
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.
