Research >> Economics
New York Purchasing Managers Business Activity contracted
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New York City business activity contracted for the first time since June 2009, according to the survey taken by the Institute for Supply Management-New York (ISMNY). The Current Business Conditions index fell below the breakeven expansion/contraction line to 47.8 in August from 57.2 in July.
Future optimism remained in positive territory, suggesting purchasing and supply executives expect the slowdown to be temporary. The Six-Month Outlook index fell to 59.9 in August from 63.2 in July.
Details on purchase volume and employment remained soft. The Quantity of Purchases index (47.1 August vs. 45.5 July) and the Employment index (48.6 August vs. 46.6 July) both contracted for the third straight month.
Price/cost pressures eased. The Prices Paid index fell to 54.3 in August from 61.4 in July.
Business impediments were more negative in the face of more volatile financial conditions. Working capital shortages spiked higher. The Question of the Month explained this move as more respondents noted a difficultly in obtaining financing and a cost structure that was too high compared to the last two years.
Posted: August 31, 2011 Wednesday 08:30 AM