Research >> Economics
Empire State Manufacturing Survey Conditions picked up markedly in April 2022
|
Business activity picked up markedly in New York State, according to firms responding to the April 2022 Empire State Manufacturing Survey. The headline general business conditions index surged thirty-six points to 24.6. New orders and shipments grew strongly, and unfilled orders increased. Delivery times lengthened, though at a slower pace than in recent months, and inventories rose. Labor market indicators pointed to a small increase in employment and the average workweek. The prices paid index hit a record high, and the prices received index remained elevated. Plans for capital and technology spending were solid. Looking ahead, firms were significantly less optimistic about the six-month outlook than in recent months.
Activity Bounces Back
After three months of sluggishness, manufacturing activity picked up significantly in New York State, according to the April survey. The general business conditions index shot up thirty-six points to 24.6. Forty percent of respondents reported that conditions had improved over the month, while fifteen percent reported that conditions had worsened. The new orders index climbed thirty-six points to 25.1, and the shipments index rose forty-two points to 34.5, pointing to a strong rebound in orders and shipments after both declined last month. The unfilled orders index came in at 17.3. The delivery times index moved down eleven points to 21.8, pointing to ongoing increases in delivery times, and inventories grew modestly.
Input Price Increases Hit Fresh Record
The index for number of employees posted a second monthly decline, dropping seven points to 7.3, and the average workweek index came in at 10.0, pointing to a small increase in employment levels and the average workweek. The prices paid index climbed thirteen points to 86.4, a record high, and the prices received index retreated seven points from last month’s record high, signaling ongoing substantial increases in both input prices and selling prices.
Optimism Wanes
Optimism about the six-month outlook declined noticeably. The index for future business conditions fell twenty-one points to 15.2, its lowest level since early in the pandemic. Longer delivery times, higher prices, and increases in employment are all expected in the months ahead, and capital spending plans remained firm.
Posted: April 15, 2022 Friday 08:30 AM