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Empire State Manufacturing Survey Conditions continued to grow strongly in September
Business activity continued to grow strongly in New York State, according to firms responding to the September 2017 Empire State Manufacturing Survey. The headline general business conditions index held steady at 24.4. The new orders index rose four points to 24.9 and the shipments index climbed four points to 16.2, pointing to ongoing solid gains in orders and shipments. Unfilled orders increased, and delivery times continued to lengthen. Labor market indicators pointed to a modest increase in employment and hours worked. Both input prices and selling prices rose at a faster pace than last month. Indexes assessing the six-month outlook suggested that firms remained optimistic about future conditions.
Brisk Pace of Growth Continues
Manufacturing firms in New York State reported that business activity continued to expand strongly in September. After reaching a three-year high in August, the general business conditions index held steady at 24.4. Forty percent of respondents reported that conditions had improved over the month, while 16 percent reported that conditions had worsened. The new orders index climbed four points to 24.9, pointing to another month of solid gains in orders, and the shipments index advanced to 16.2. The unfilled orders index moved out of negative territory, its fourteen-point rise to 8.9 signaling an increase in unfilled orders. The delivery time index rose nine points to 14.6, pointing to longer deliver times, and the inventories index rose to 6.5, a sign that inventory levels were somewhat higher.
Price Increases Pick Up
Labor market conditions improved in September. The index for number of employees advanced four points to 10.6, suggesting a modest increase in employment levels, and the average workweek index remained positive at 5.7, indicating that the average workweek was somewhat longer. Prices increased at a faster clip than last month: the prices paid index rose five points to 35.8, and the prices received index moved up eight points to 13.8.
Firms Remain Optimistic
Indexes assessing the six-month outlook suggested that firms continued to be optimistic about future conditions. The index for future business conditions came in at 39.3, and the index for future new orders edged up two points to 43.7. Employment was expected to increase modestly. The capital expenditures index climbed thirteen points to 24.4, and the technology spending index moved up to 17.1.
Posted: September 15, 2017 Friday 08:30 AM