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Empire State Manufacturing Survey Conditions improvement continues
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The July 2014 Empire State Manufacturing Survey indicates that business conditions improved significantly for a third consecutive month for New York manufacturers. The headline general business conditions index climbed six points to 25.6, its highest level in more than four years. The new orders index was little changed at 18.8, while the shipments index rose nine points to 23.6; both indexes were at multiyear highs. The unfilled orders index fell six points to -6.8. The indexes for both prices paid and prices received were higher this month, indicating a pickup in the pace of price increases. Labor market conditions continued to improve, with indexes pointing to a solid increase in employment levels and a slight increase in hours worked. Although many of the indexes for the six-month outlook were significantly lower, conditions overall were expected to continue improving in the months ahead.
General Business Conditions Index Reaches Four-Year High
Business conditions improved significantly for a third consecutive month for New York manufacturers, according to the July 2014 survey. The general business conditions index advanced six points to 25.6, a four-year high. Forty-one percent of respondents reported that conditions had improved over the month, while 15 percent reported that conditions had worsened. The new orders index held at 18.8, and the shipments index rose nine points to 23.6; both of these indexes were at their highest levels since early 2010. The unfilled orders index dropped six points to -6.8, suggesting that fewer orders remained unfilled. The delivery time index fell two points to -1.1, and the inventories index fell 13 points to -3.4, pointing to a small decline in inventory levels.
A Solid Increase in Employment
Both price indexes climbed this month, and suggested that the pace of price increases had accelerated. The prices paid index rose eight points to 25.0, and the prices received index inched up three points to 6.8. Labor market conditions continued to improve. The index for number of employees climbed six points to 17.0, a level which indicated a solid increase in employment levels. The average workweek index retreated seven points to 2.3, and pointed to a slight increase in hours worked.
Level of Optimism Falls
Despite the steep gains in many of the survey’s indexes for current conditions, optimism about future conditions, while still fairly strong, diminished. The index for future general business conditions fell eleven points to 28.5. The future new orders index dropped nineteen points to 25.6, and the future shipments index tumbled twenty-one points to 24.6. The index for expected number of employees fell three points to 17.1, and the future average workweek index turned slightly negative. The capital expenditures index fell three points to 9.1, and the technology spending index rose seven points to 10.2.
Posted: July 15, 2014 Tuesday 08:30 AM