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Empire State Manufacturing Survey Conditions grew at a swift pace in September 2021
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Business activity grew at a swift pace in New York State, according to firms responding to the September 2021 Empire State Manufacturing Survey. The headline general business conditions index climbed sixteen points to 34.3. New orders, shipments, and unfilled orders all increased substantially. The delivery times index reached a record high. Labor market indicators pointed to strong growth in employment and the average workweek. Both the prices paid and prices received indexes were at or near record highs. Looking ahead, firms remained very optimistic that conditions would improve over the next six months, and capital spending and technology spending plans increased markedly.
Growth Picks Up
Manufacturing activity grew swiftly in New York State, according to the September survey. The general business conditions index climbed sixteen points to 34.3. Forty-six percent of respondents reported that conditions had improved over the month, while 12 percent reported that conditions had worsened. The new orders index rose nineteen points to 33.7, and the shipments index shot up twenty-three points to 26.9, indicating strong growth in both orders and shipments. The unfilled orders index rose to 20.9. The delivery times index moved up to a record high of 36.5, indicating significantly longer delivery times. Inventories increased modestly.
Selling Price Increases Continue to Set Records
The index for number of employees rose eight points to 20.5, and the average workweek index increased fifteen points to 24.3, pointing to strong gains in employment and hours worked. The prices paid index held steady at 75.7, and the prices received index edged up two points to 47.8, marking its third consecutive record high.
Outlook Remains Very Positive
The index for future business conditions was little changed at 48.4, pointing to ongoing optimism about the six-month outlook. The indexes for future new orders and shipments rose to similar levels. Substantial increases in employment and prices are expected in the months ahead. The capital expenditures index climbed eleven points to 33.9, a multi-year high, and the technology spending index rose eighteen points to 33.0, a record high.
Posted: September 15, 2021 Wednesday 08:30 AM