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Empire State Manufacturing Survey Conditions Continue to Worsen
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The Empire State Manufacturing Survey indicates that conditions for New York manufacturers worsened for a fourth consecutive month in September. The general business conditions index inched down one point, to -8.8. The new orders index held steady at -8.0, while the shipments index dropped sixteen points to -12.9. The inventories index, negative for a third month in a row, fell to -12.0—a sign that inventories continued to decline. After dropping significantly over the summer, the indexes for both prices paid and prices received climbed several points, suggesting that the pace of price increases picked up. Employment indexes were below zero, indicating that employment levels and hours worked fell over the month. Indexes for the six-month outlook were somewhat better than last month and generally suggested that business activity was expected to improve in the months ahead, but optimism remained well below its levels of earlier this year.
In a series of supplementary questions, manufacturers were asked about past and expected changes in their selling prices; parallel questions had been asked in September 2010 and in earlier years. Respondents to the current survey reported that their selling prices had risen by 1.4 percent, on average, during the past twelve months and were expected to rise by an average of 1.0 percent over the next year. In last September’s survey, selling prices were expected to increase by 1.8 percent.
Business Activity Worsens for a Fourth Month
Business conditions continued to worsen at a modest pace for New York manufacturers in September. The general business conditions index, negative for a fourth consecutive month, edged down a point to -8.8. Nineteen percent of respondents said that conditions had improved in September, while 28 percent said that conditions had deteriorated. The new orders index was also negative for a fourth consecutive month, and remained steady at -8.0. The shipments index fell sixteen points to -12.9, and the unfilled orders index remained below zero at -7.6. The delivery time index was little changed at -1.1. The inventories index dropped four points to -12.0, suggesting that inventory levels declined.
Posted: September 15, 2011 Thursday 08:30 AM