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Empire State Manufacturing Survey Conditions grew strongly in November 2021
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Business activity grew strongly in New York State, according to firms responding to the November 2021 Empire State Manufacturing Survey. The headline general business conditions index climbed eleven points to 30.9. New orders and shipments posted substantial increases, and unfilled orders rose. Delivery times were significantly longer. Employment grew at its fastest pace on record, and the average workweek increased. The prices paid index held near its record high, and the prices received index reached a new peak. Firms planned significant increases in capital and technology spending. Looking ahead, firms remained optimistic that conditions would improve over the next six months, though optimism dipped.
Growth Remains Strong
Manufacturing activity grew swiftly in New York State, according to the November survey. The general business conditions index climbed eleven points to 30.9. Forty-three percent of respondents reported that conditions had improved over the month, while 12 percent reported that conditions had worsened. The new orders index rose five points to 28.8, and the shipments index shot up nineteen points to 28.2, indicating strong growth in both orders and shipments. The unfilled orders index edged down to 12.7. The delivery times index came in at 32.2, indicating significantly longer delivery times. Inventories increased modestly.
Employment Rises at Record-Setting Pace
The index for number of employees rose nine points to 26.0, a record high, and the average workweek index increased eight points to 23.1, pointing to strong gains in employment and hours worked. The prices paid index edged up four points to 83.0, and the prices received index moved up seven points to a record high of 50.8, signaling ongoing substantial increases in both input prices and selling prices.
Optimism Dips
Firms were less optimistic about the six-month outlook than they were last month, with the index for future business conditions falling fifteen points to 36.9. The indexes for future new orders and shipments fell to similar levels. Longer delivery times, higher prices, and increases in employment are all expected in the months ahead. The capital expenditures index climbed three points to 34.7, and the technology spending index ticked up to 28.0, suggesting that firms plan significant increases in both capital spending and technology spending.
Posted: November 15, 2021 Monday 08:30 AM