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Empire State Manufacturing Survey Condition were little changed in January 2021
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Business activity was little changed in New York State, according to firms responding to the January 2021 Empire State Manufacturing Survey. The headline general business conditions index held steady at 3.5. New orders and shipments edged higher. Unfilled orders continued to move lower, and delivery times continued to lengthen somewhat. Employment levels increased modestly and the average workweek lengthened. Input price increases and selling price increases both picked up noticeably. Looking ahead, firms remained optimistic that conditions would improve over the next six months.
Growth Remains Sluggish
There was little growth in manufacturing activity in New York State in January. The general business conditions index was similar to last month’s level at 3.5. Twenty-seven percent of respondents reported that conditions had improved over the month, while 23 percent reported that conditions had worsened. The new orders index rose three points to 6.6, indicating a small increase in orders, and the shipments index fell to 7.3, pointing to a modest increase in shipments. Delivery times were somewhat longer, and inventories held steady.
Price Increases Pick Up
The index for number of employees fell three points to 11.2, a level pointing to ongoing gains in employment. The average workweek index was little changed at 6.3, signaling another small increase in hours worked. The prices paid index rose eight points to 45.5, its highest level in two years, indicating a pickup in input price increases. This index has risen a cumulative 41 points since May. The prices received index climbed five points to 15.2, its highest level in a year, pointing to an acceleration in selling prices.
Firms Remain Optimistic
The index for future business conditions came in at 31.9, suggesting that firms remained optimistic about future conditions. The indexes for future new orders and shipments were positive and slightly higher than last month’s readings. Employment levels and the average workweek are expected to continue to increase in the months ahead. The capital expenditures index came in at 17.9, and technology spending indexes moved down to 13.1.
Posted: January 15, 2021 Friday 08:30 AM