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Empire State Manufacturing Survey Conditions slowed
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The Empire State Manufacturing Survey indicates that while conditions for New York manufacturers continued to improve in July, the pace of growth in business activity slowed substantially over the month. The general business conditions index remained positive but fell 15 points, to 5.1. The new orders and shipments indexes were also positive but lower than last month’s levels. Employment indexes dipped as well, with the average workweek index falling below zero for the first time this year. The prices paid index was positive and held steady, while the prices received index declined to a level just below zero. The future general business conditions index was little changed, remaining close to its May and June levels but below the highs seen earlier in the year. The index for future number of employees fell markedly, although it remained above zero. The capital spending and technology spending indexes were also positive, but both were well below the peak levels reached in May.
In a series of supplementary questions, manufacturers were asked to estimate the percentage changes in their sales and employment levels from 2009 to 2010—both year to date and for the calendar year. In this year’s survey, the median respondent reported that sales were up 7 percent for the first half of 2010 and were expected to be up 8 percent for the full calendar year—a stark contrast with the results of last July’s survey, when the median respondent reported 15 percent declines for the corresponding time horizons in 2009. In the current survey, the number of employees was reported to be unchanged in the first half of the year and was expected to remain so over the full year. In the 2009 survey, 10 percent declines were seen for both horizons. Respondents were also queried about the contribution of exports to firm revenues and about firm efforts to market abroad. In general, respondents indicated that exports accounted for a growing share of their revenues; their firms were devoting more resources to marketing abroad—particularly in Asia—and were expecting sales to be higher in the next 12 months than in the past 12 months across all parts of the world.
Posted: July 15, 2010 Thursday 08:30 AM