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Empire State Manufacturing Survey Conditions Bounces Back in June
Business activity rebounded strongly in New York State, according to firms responding to the June 2017 Empire State Manufacturing Survey. The headline general business conditions index shot up twenty-one points to 19.8, its highest level in more than two years. The new orders index posted a similar increase, rising twenty-three points to 18.1, and the shipments index advanced to 22.3.The inventories index climbed to 7.7, indicating a rise in inventory levels, and labor market indicators pointed to a modest increase in employment and hours worked. The pace of input price increases was unchanged, while selling price increases picked up somewhat. Looking ahead, firms remained optimistic about the six-month outlook.
Business Activity Bounces Back
Manufacturing firms in New York State reported that business activity grew at a solid clip in June. After dropping to a level just below zero last month, the general business conditions index more than made up for lost ground, rising twenty-one points to 19.8, its highest level since September 2014. Thirty-six percent of respondents reported that conditions had improved over the month, while 16 percent reported that conditions had worsened. The new orders index, which showed a decline in orders last month, jumped twenty-three points to 18.1, indicating that orders increased markedly. The shipments index rose to 22.3, pointing to a substantial increase in shipments. The unfilled orders index moved up to 4.6, and the delivery time index was little changed at 5.4. The inventories index rose to 7.7, a sign that inventory levels were higher.
Labor Market Conditions Continue to Improve
Employment indexes remained positive, pointing to continued modest growth in employment levels and hours worked. The index for number of employees edged down four points to 7.7, and the average workweek index was little changed at 8.5. The prices paid index held steady at 20.0, and the prices received index rose six points to 10.8, pointing to a pickup in selling price increases.
Firms Remain Optimistic
Indexes assessing the six-month outlook suggested that firms continued to expect conditions to improve. The index for future business conditions was little changed at 41.7, and the index for future new orders rose nine points to 42.2. Inventories were expected to be slightly lower in the months ahead, and employment was expected to increase modestly. The capital expenditures index rose to 20.8, and the technology spending index was 11.5.
Posted: June 15, 2017 Thursday 08:30 AM