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Empire State Manufacturing Survey Conditions held steady in September 2022
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Business activity held steady in New York State, according to firms responding to the September 2022 Empire State Manufacturing Survey. The headline general business conditions index climbed thirty points to -1.5. New orders edged higher, and shipments increased sharply. Delivery times held steady, and inventories expanded. Labor market indicators pointed to a modest increase in employment and no change in the average workweek. Price indexes moved notably lower, pointing to a deceleration in price increases. Looking ahead, firms were not very optimistic that business conditions would improve over the next six months.
Activity Levels Off after a Sharp Decline
Manufacturing activity held steady in New York State on the heels of a sharp decline last month, according to the September survey. The general business conditions index climbed thirty points to -1.5. Thirty percent of respondents reported that conditions had improved over the month, and thirty-two percent reported that conditions had worsened. The new orders index climbed thirty-three points to 3.7, indicating a slight increase in orders, while the shipments index surged forty-four points to 19.6, pointing to a rebound in shipments after they declined significantly last month. The unfilled orders index came in at -7.5, indicating that unfilled orders shrank for a fourth consecutive month. The delivery times index hovered near zero for a second consecutive month, indicating that delivery times held steady. The inventories index edged up to 9.4, a sign that inventories increased modestly.
Price Increases Slow
The index for number of employees was little changed at 9.7, pointing to a modest increase in employment levels, and the average workweek index climbed to around zero, indicating no change in hours worked. The prices paid index fell sixteen points to 39.6; this index has fallen a cumulative thirty-nine points over the past three months, pointing to a significant and ongoing deceleration in price increases. The prices received index fell nine points to 23.6, its lowest level since early 2021.
Firms Expect Little Improvement
The index for future business conditions rose six points to 8.2, suggesting little optimism about the six-month outlook. The index for future new orders remained depressed, though employment is expected to pick up. Delivery times are expected to shorten. Moderate increases in capital and technology spending are planned for the months ahead.
Posted: September 15, 2022 Thursday 08:30 AM