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Empire State Manufacturing Survey Conditions Improved Modestly
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The August 2013 Empire State Manufacturing Survey indicates that conditions for New York manufacturers improved modestly for a third consecutive month. The general business conditions index, at 8.2, was little changed from last month. The new orders index slipped four points to 0.3 and the shipments index fell seven points to 1.5, suggesting that both orders and shipments were flat. The prices paid index rose slightly to 20.5, and the prices received index climbed three points to 3.6. Labor market conditions improved, with the index for number of employees climbing eight points to 10.8 and the average workweek index rising twelve points to 4.8. Both of these indexes reached their highest levels in a year. Indexes for the six-month outlook generally pointed to strong optimism about future business activity; the future general business conditions index rose five points to 37.4, its highest level in more than a year.
In response to a series of supplementary questions, manufacturers predicted that overall sales or revenues would be 5 percent higher in 2013 than in 2012; employment levels and capital spending were expected to be little changed from last year. Also, more respondents reported that they had scaled back than raised their sales expectations for 2013 from what they had anticipated at the beginning of the year. Hiring and capital spending plans for 2013 were only slightly less positive than at the beginning of the year. For more details, see the full supplemental report.
Business Conditions Improve for a Third Consecutive Month
Business conditions strengthened for New York State manufacturers for a third consecutive month, according to the August 2013 survey. The general business conditions index was 8.2, a reading similar to last month’s. Thirty percent of respondents reported that conditions had improved over the month, while 22 percent reported that conditions had worsened. The new orders index fell four points to 0.3 and the shipments index fell seven points to 1.5, indicating that both orders and shipments were flat over the month. The unfilled orders index came in at -6.0. The delivery time index fell to -1.2, and the inventories index rose three points to -3.6, pointing to a continued small drop in inventory levels.
Labor Market Conditions Strengthen
Price indexes were slightly higher. The prices paid index inched up three points to 20.5. The prices received index rose three points to 3.6, indicating a small increase in selling prices. Labor market conditions strengthened, with employment indexes advancing to their highest levels in a year. The index for number of employees rose eight points to 10.8, and the average workweek index climbed twelve points to 4.8.
Six-Month Outlook Remains Favorable
Indexes for the six-month outlook generally conveyed strong optimism about future business conditions. The future general business conditions index rose five points to 37.4, its highest level in more than a year. The future new orders index was 30.0, and the future shipments index was also 30.0, both little changed from last month’s levels. The future prices paid index moved up thirteen points to 41.0, and the future prices received index rose seven points to 19.3. The index for expected number of employees rose seven points to 8.4, while the future average workweek index remained negative at -6.0. The capital expenditures index rose sharply, climbing fourteen points to 24.1, its highest level in more than a year. The technology spending index fell six points to 4.8.
Posted: August 15, 2013 Thursday 08:30 AM