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Empire State Manufacturing Survey Conditions declined in May 2022
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After growing strongly last month, business activity declined in New York State, according to firms responding to the May 2022 Empire State Manufacturing Survey. The headline general business conditions index dropped thirty-six points to -11.6. New orders declined, and shipments fell at the fastest pace since early in the pandemic. Delivery times continued to lengthen, and inventories expanded. Labor market indicators pointed to a modest increase in employment and the average workweek. Both the prices paid and prices received indexes moved lower, but were still elevated. Looking ahead, optimism about the six-month outlook remained subdued.
Activity Declines
After growing significantly last month, manufacturing activity declined in New York State, according to the May survey. The general business conditions index retreated thirty-six points to -11.6, its second negative reading in the past three months. Twenty percent of respondents reported that conditions had improved over the month, while thirty-two percent reported that conditions had worsened. The new orders index fell thirty-four points to -8.8, and the shipments index plunged fifty points to -15.4, marking a sharp reversal for the two measures, both of which increased last month. The unfilled orders index fell to 2.6. The delivery times index held steady at 20.2, pointing to continued lengthening in delivery times, and inventories increased.
A Modest Increase in Employment
The index for number of employees increased seven points to 14.0, and the average workweek index held steady at 11.9, indicating a modest increase in employment levels and the average workweek. After reaching a record high last month, the prices paid index fell thirteen points to a still elevated 73.7, and the prices received index edged down to 45.6, signaling ongoing substantial increases in both input prices and selling prices, though at a slower pace than last month.
Optimism Remains Subdued
As in April, firms expressed less optimism about the six-month outlook than they did earlier this year. The index for future business conditions was little changed at 18.0. Increases in prices and employment are expected to continue in the months ahead. The capital expenditures index fell to its lowest level in several months.
Posted: May 16, 2022 Monday 08:30 AM