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Empire State Manufacturing Survey Conditions Expand at a Moderate Pace
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The May Empire State Manufacturing Survey indicates that manufacturing activity expanded in New York State at a moderate pace. The general business conditions index rose eleven points to 17.1. The new orders index inched up to 8.3, and the shipments index shot up eighteen points to 24.1. The indexes for both prices paid and prices received were positive but lower in May, indicating that the pace of price increases slowed. Employment index readings remained relatively healthy, suggesting that employment levels and hours worked continued to expand. Future indexes were noticeably lower than last month, indicating a positive but somewhat less optimistic view of the six-month outlook.
In a series of supplementary questions, firms were asked about past and expected changes in both their input prices (prices paid) and selling prices (prices received). Respondents estimated that the prices they paid increased 3.6 percent, on average, over the past twelve months—down sharply from the 8.1 percent rise reported in last May’s survey. Looking ahead to the next twelve months, respondents on average predicted a price rise of 3.5 percent. Firms reported smaller increases in prices received: the average respondent cited a 1.7 percent increase in selling prices over the past year (down from 1.9 percent in the May 2011 survey) and an expected increase of 2.1 percent for the year ahead.
The May index for general business conditions rose a solid eleven points to 17.1, suggesting that activity for New York State’s manufacturers expanded at a moderate pace. A little more than 40 percent of respondents reported that conditions had improved over the month, while 23 percent reported that conditions had worsened. The new orders index inched up two points to 8.3, signaling a modest rise in orders. The shipments index shot up eighteen points to 24.1, its highest level in a year. The unfilled orders index remained negative, at -4.8. The delivery time index fell to zero, and the inventories index inched up four points to 4.8.
Posted: May 15, 2012 Tuesday 08:30 AM