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Empire State Manufacturing Survey Conditions expanded at a robust pace
The September 2014 Empire State Manufacturing Survey indicates that business activity expanded at a robust pace for New York manufacturers. The headline general business conditions index rose thirteen points to 27.5, a multiyear high. The new orders index moved up three points to 16.9, and the shipments index advanced two points to 27.1. The unfilled orders index fell three points to -10.9. The prices paid index declined three points to 23.9, indicating a slower pace of input price increases, while the prices received index climbed nine points to 17.4, suggesting a pickup in the pace of selling price increases. Employment indexes showed a slight increase in employment levels and hours worked. Indexes for the six-month outlook conveyed a high degree of optimism about future business conditions.
Business Activity Expands Robustly
Growth in business activity for New York manufacturers was solid, according to the September 2014 survey. The general business conditions index climbed thirteen points to 27.5, its highest level since late 2009. Forty-six percent of respondents reported that conditions had improved over the month, while 18 percent reported that conditions had worsened. The new orders index rose three points to 16.9, indicating a sturdy increase in orders, and the shipments index advanced two points to 27.1, pointing to a substantial increase in shipments. The unfilled orders index dropped three points to -10.9, suggesting that fewer orders remained unfilled over the month. The delivery time index was little changed at -5.4, and the inventories index, up seven points to -7.6, showed a decline in inventory levels for a third consecutive month.
Selling Prices Rise More Sharply
The prices paid index was slightly lower this month, falling three points to 23.9—a sign that input price increases were somewhat less widespread. The prices received index, however, jumped nine points to 17.4, indicating a pickup in the pace of selling price increases. Employment indexes pointed to a small increase in employment levels and hours worked: the index for number of employees fell ten points to 3.3, and the average workweek index dropped five points to 3.3.
Outlook Remains Bright
Optimism about future business conditions remained high. The index for future general business conditions was unchanged from last month at 46.7. The future new orders index fell five points to 45.6, and the future shipments index declined seven points to 47.5. Though both of these indexes were somewhat below their August levels, they remained high by historical standards. The index for expected number of employees dipped to 14.1, and the future average workweek index was 5.4. The capital expenditures index fell five points to 13.0, and the technology spending index edged down three points to 9.8.
Posted: September 15, 2014 Monday 08:30 AM