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Empire State Manufacturing Survey Conditions continued to expand at slower pace in June 2021
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Business activity continued to expand in New York State, though at a slower pace than last month, according to firms responding to the June 2021 Empire State Manufacturing Survey. The headline general business conditions index fell seven points to 17.4. New orders and shipments increased moderately, and there was a rise in unfilled orders. Delivery times lengthened at a record-setting pace, and inventories edged lower. Employment levels and the average workweek continued to grow modestly, and both input prices and selling prices continued to rise sharply. Looking ahead, firms remained optimistic that conditions would improve over the next six months, with the index for future employment reaching a record high.
Activity Expands for a Twelfth Consecutive Month
Manufacturing activity grew solidly in New York State, according to the June survey, though at a slower pace than seen in the past few months. The general business conditions index moved down seven points to 17.4. Thirty-nine percent of respondents reported that conditions had improved over the month, while 21 percent reported that conditions had worsened. The new orders index fell thirteen points to 16.3, and the shipments index fell sixteen points to 14.2, pointing to ongoing gains in orders and shipments, though at a milder pace than last month. Unfilled orders were slightly higher. The delivery times index hit another record high, rising six points to 29.8, pointing to significantly longer delivery times. Inventories edged somewhat lower.
Price Indexes Down Just Slightly from Record Highs
The index for number of employees held steady at 12.3, and the average workweek index fell four points to 15.1, indicating ongoing modest gains in employment and hours worked. Both price indexes retreated only slightly from last month’s record highs, suggesting ongoing significant price increases: the prices paid index fell four points to 79.8, and the prices received index declined four points to 33.3.
Outlook Remains Highly Optimistic
The index for future business conditions rose eleven points to 47.7, and the indexes for future new orders and shipments rose to similar levels, indicating that firms remained very optimistic about future conditions. The index for future employment rose to a record 41.7, with 45 percent of firms reporting that they expect to increase employment over the next six months. The indexes for future prices paid and future prices received remained elevated. The capital expenditures index fell seven points to 18.4, and the technology spending index fell seven points to 14.9, suggesting some slowing in capital spending and technology spending plans.
Posted: June 15, 2021 Tuesday 08:30 AM