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Empire State Manufacturing Survey Conditions Continue to Weaken
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The September Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to weaken. The general business conditions index slipped another five points to -10.4, its second consecutive negative reading. The new orders index fell nine points to -14.0, its third straight negative reading. Both of these measures reached their lowest levels in almost two years. The shipments index was little changed at 2.8. The prices paid index edged up to 19.2, suggesting moderate increases in input prices, while the prices received index hovered a little above zero for a fourth consecutive month. The index for number of employees fell noticeably but remained just above zero at 4.3, suggesting a slower pace of hiring activity than in recent months. The average workweek index remained near zero. By contrast, indexes for the six-month outlook were mostly steady to somewhat higher than in August, suggesting modestly greater optimism about business conditions in the months ahead.
In a series of supplementary questions, manufacturers were asked about recent and expected changes in their selling prices. Firms, on average, indicated that the prices they charged had risen by about 1 percent over the past year and were expected to rise by just under 2 percent in the year ahead. Last September’s survey pointed to similarly modest price increases.
In a sign that activity had declined for New York manufacturers over the month, the general business conditions index fell five points to -10.4 —its lowest level since November 2010. Eighteen percent of respondents reported that conditions had improved, while 29 percent indicated that conditions had worsened. The new orders index fell nine points to -14.0, its third consecutive negative reading and its lowest reading since late 2010. The shipments index was down marginally for the month at 2.8, and the unfilled orders index slipped to -14.9. The delivery time index, however, rose more than nine points to 2.1—its first positive reading since April—indicating that delivery times lengthened slightly. The inventories index rose to zero, suggesting no change in inventory levels.
Posted: September 17, 2012 Monday 08:30 AM