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Empire State Manufacturing Survey Conditions Improve in June
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The June 2016 Empire State Manufacturing Survey indicates that business activity expanded modestly for New York manufacturers. The headline general business conditions index climbed fifteen points to 6.0. The new orders index and the shipments index rose from negative values to 10.9 and 9.3, respectively—a sign that orders and shipments were increasing after last month’s decline. The inventories index fell to -15.3, indicating that inventories were lower, and the employment index was zero, signaling that employment counts were unchanged. The prices paid index held steady at 18.4, suggesting that moderate input price increases were continuing, and the prices received index was near zero, indicating that selling prices were stable. Firms were more optimistic about the six-month outlook this month, and capital spending plans picked up.
Business Conditions Improve
Business activity expanded modestly for New York manufacturing firms, according to the June 2016 survey. After dipping below zero in May, the general business conditions index advanced fifteen points to 6.0. Twenty-eight percent of respondents reported that conditions had improved over the month, while 22 percent reported that conditions had worsened. The new orders index also rose above zero, its sixteen-point climb to 10.9 pointing to an increase in orders. Shipments were higher, with the shipments index rising to 9.3, while the unfilled orders index fell to -10.2. The delivery time index moved up to -2.0, and at -15.3, the inventories index indicated that firms drew down inventories in June.
Employment Remains Flat
The prices paid index was little changed at 18.4, an indication that input prices continued to increase at a moderate pace. The prices received index edged up to -1.0, suggesting that selling prices were largely stable. The employment index came in at a reading of zero, indicating that employment levels remained flat—a pattern evident since February. At -5.1, the average workweek index showed that hours worked declined this month.
Greater Optimism about the Six-Month Outlook
Indexes for the six-month outlook suggested that respondents were more sanguine about future conditions. The index for future business conditions rose six points to 34.8, reaching its highest level of 2016. Indexes for future new orders and shipments also increased, and firms expected employment levels and the average workweek to hold steady in the coming months. After a sharp decline last month, the capital expenditures index rose eight points to 11.2, and the technology spending index edged down to 4.1.
Posted: June 15, 2016 Wednesday 08:30 AM