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Empire State Manufacturing Survey Conditions little changed in February 2022
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Business activity was little changed in New York State, according to firms responding to the February 2022 Empire State Manufacturing Survey. The headline general business conditions index moved up four points to 3.1. New orders and shipments held steady, and unfilled orders increased. Delivery times continued to lengthen. Labor market indicators pointed to a solid increase in employment and a longer average workweek. The prices paid index remained near its recent peak, and the prices received index reached a new record high. Plans for capital and technology spending remained strong. Looking ahead, while firms generally expect conditions to improve over the next six months, optimism dipped to its lowest level since mid-2020.
Activity Remains Flat
Manufacturing activity was little changed in New York State for a second consecutive month according to the February survey. After falling to around zero last month, the general business conditions index edged up four points to 3.1. Thirty-four percent of respondents reported that conditions had improved over the month, while 30 percent reported that conditions had worsened. The new orders index came in at 1.4, and the shipments index was 2.9, signaling little change in orders and shipments over the month. The unfilled orders index came in at 14.4. The delivery times index was unchanged at 21.6, suggesting that delivery times continued to lengthen significantly, and inventories increased modestly.
Selling Prices Increase at a Record Pace
The index for number of employees climbed seven points to 23.1, indicating solid gains in employment levels, and the average workweek index held steady at 10.9. The prices paid index was little changed at 76.6, while the prices received index rose a steep seventeen points to a record high of 54.1, signaling ongoing substantial increases in both input prices and selling prices.
Optimism Dips
Firms were generally optimistic about the six-month outlook, but optimism waned. The index for future business conditions fell seven points to 28.2, its lowest level since the early stages of the pandemic. Longer delivery times, higher prices, and increases in employment are all expected in the months ahead. The capital expenditures index remained near a multi-year high, suggesting that firms plan significant increases in capital spending.
Posted: February 15, 2022 Tuesday 08:30 AM