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Empire State Manufacturing Survey Conditions grow at a solid clip in May 2021
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Business activity continued to grow at a solid clip in New York State, according to firms responding to the May 2021 Empire State Manufacturing Survey. The headline general business conditions index was little changed at 24.3. New orders and shipments continued to expand strongly, and unfilled orders increased. Delivery times lengthened significantly, and inventories moved somewhat higher. Employment levels grew modestly, and the average workweek increased. Both input prices and selling prices rose at a record-setting pace. Looking ahead, firms remained optimistic that conditions would improve over the next six months, and expected significant increases in employment and prices.
Activity Remains Vigorous
As occurred last month, manufacturing activity grew at a sturdy pace in New York State in May. The general business conditions index edged down two points to 24.3. Thirty-seven percent of respondents reported that conditions had improved over the month, while 13 percent reported that conditions had worsened. The new orders index moved up two points to 28.9, a multi-year high, and the shipments index climbed five points to 29.7, pointing to another month of strong gains in orders and shipments. Unfilled orders increased. The delivery times index moved down five points, but at 23.6, it held near its record high from last month, pointing to significantly longer delivery times. Inventories moved somewhat higher.
Price Indexes Hit New Records
The index for number of employees held steady at 13.6, while the average workweek index climbed six points to 18.7, indicating ongoing gains in employment and hours worked. Both price indexes reached record highs: the prices paid index rose nine points to 83.5, and the prices received index rose two points to 37.1.
Further Price Increases and Strong Employment Growth Expected
The index for future business conditions was little changed at 36.6, suggesting that firms remained optimistic about future conditions. The indexes for future new orders and shipments also held at similar levels. The indexes for future prices paid and future prices received remained elevated. Firms on net expect to increase employment significantly in the months ahead. The capital expenditures index came in at 25.7, and the technology spending index was 22.1.
Posted: May 17, 2021 Monday 08:30 AM