New York manufacturing activity jumped in July, according to the latest edition of the Empire State Manufacturing Survey.
The state’s general business-conditions index soared 26 points to 43 in the year’s seventh month, a record high, the Federal Reserve Bank of New York said in its July 15 report. That easily topped economists’ expectations of a reading of 17.4, according to the Wall Street Journal.
The July results — based on firms responding to the survey — indicates business activity in New York “grew at a record-setting pace,” the New York Fed said.
The survey found half of respondents reported that conditions had improved over the month, while just 7 percent said that conditions had worsened, the New York Fed said.
The Empire State Survey’s new-orders index climbed 17 points to 33.2, and the shipments index increased 30 points to 43.8, pointing to “rapid growth” in both orders and shipments, the New York Fed said.
Unfilled orders rose. The delivery-times index fell 10 points from last month’s record high, though at 20.2, it indicated that “significantly longer” delivery times are an “ongoing issue.” Inventories expanded “considerably.”
The index for number of employees increased 8 points to 20.6, and the average-workweek index held steady at 14.0, pointing to ongoing gains in employment and hours worked.
Both price indexes were at or near record highs, indicating that price increases “remain significant.” The prices-paid index edged down just slightly to 76.8, while the prices-received index climbed 6 points to 39.4, a new record, the New York Fed said.
The index for future business conditions fell 8 points, but at 39.5 indicated “ongoing optimism” about future conditions. The indexes for future new orders and shipments fell to similar levels.
The index for future employment edged up to a new record high of 43.9, with half of firms reporting that they expect to increase employment over the next six months. The indexes for future prices paid and future prices received remained elevated.
The capital-expenditures index rose to 26.3, and the technology-spending index held steady at 14.1.
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.