Research >> Economics
Empire State Manufacturing Survey Conditions Continue to Worsen in November
|
The November 2015 Empire State Manufacturing Survey indicates that business activity declined for a fourth consecutive month for New York manufacturers. The headline general business conditions index was little changed at -10.7. New orders and shipments also declined, although at a slower pace than last month. Price indexes suggested that input prices increased slightly, while selling prices were slightly lower. Labor market conditions continued to deteriorate, with survey indicators pointing to a decline in both employment levels and hours worked. Indexes for the six-month outlook were little changed from last month, and suggested that optimism about future conditions remained tepid, even though employment is expected to increase.
Business Conditions Continue to Worsen
Business activity declined for a fourth consecutive month for New York manufacturers, according to the November 2015 survey. The general business conditions index was little changed at -10.7. Nineteen percent of respondents reported that conditions had improved over the month, while 29 percent reported that conditions had worsened. The new orders index climbed seven points, but at -11.8, it pointed to an ongoing decline in orders. Similarly, the shipments index climbed ten points to -4.1, signaling that shipments also declined. The unfilled orders index fell three points to -18.2. Delivery times were shorter again this month, with the delivery time index holding steady at -10.9. The inventories index fell ten points to -17.3, indicating a significant reduction in inventory levels.
Labor Market Conditions Weaken Further
The prices paid index edged up to 4.6, suggesting that input prices increased somewhat after holding steady last month. The prices received index remained negative at -4.6, indicating that selling prices declined for a third consecutive month. Labor market conditions continued to weaken. The index for number of employees was little changed at -7.3, a sign that employment levels fell for a third consecutive month, and the average workweek index moved down seven points to -14.6, its lowest level since mid-2011.
Optimism Remains Muted
Indexes for the six-month outlook were little changed from last month, and suggested that optimism about future business conditions remained muted. The index for future business conditions was slightly lower at 20.3, and the indexes for future new orders and future shipments, while positive, also edged lower. Employment was expected to improve, with the index for expected number of employees climbing to 16.4 and the index for expected workweek rising to 5.5. The capital expenditures index was little changed at 12.7, and the technology spending index fell four points to 1.8.
Posted: November 16, 2015 Monday 08:30 AM