Research >> Economics
Empire State Manufacturing Survey Conditions took a sharp turn downward in June
Business activity took a sharp turn downward in New York State, according to firms responding to the June 2019 Empire State Manufacturing Survey. The headline general business conditions index plummeted twenty-six points, its largest monthly decline on record, to -8.6. New orders receded, while shipments increased modestly. Unfilled orders fell, and delivery times and inventories moved slightly lower. Labor market indicators pointed to small declines in employment and hours worked. The pace of input price increases was little changed, while selling price increases slowed. Indexes assessing the six-month outlook indicated that firms were less optimistic about future conditions than they were last month.
Growth Abruptly Reverses
Manufacturing firms in New York State reported that business activity declined. The general business conditions index fell by a record twenty-six points to -8.6, the first negative reading for the index in more than two years. Twenty-two percent of respondents reported that conditions had improved over the month, while 30 percent reported that conditions had worsened. The new orders index also posted a significant decline, falling twenty-two points to -12.0, indicating a decline in orders. The shipments index fell seven points to 9.7, pointing to a modest increase in shipments. Unfilled orders declined, delivery times were somewhat shorter, and inventories moved slightly lower.
The index for number of employees fell eight points to -3.5, its first negative value in over two years, pointing to a small decline in employment levels. The average workweek index also fell below zero, to -2.2, pointing to a slightly shorter workweek. The prices paid index was little changed at 27.8, suggesting input prices increased at about the same pace as last month. The prices received index fell six points to 6.8, marking a fourth consecutive decline and pointing to an ongoing deceleration in selling price increases.
Future Indexes Decline
Indexes assessing the six-month outlook were generally lower than last month. The index for future business conditions fell five points to 25.7. The indexes for future new orders and shipments fell to similar levels. Firms expected solid increases in employment but no change in the average workweek in the months ahead. The capital expenditures index fell sixteen points to 10.5, pointing to slower growth in capital spending plans, and the technology spending index fell ten points to 12.8.
Posted: June 17, 2019 Monday 08:30 AM