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Empire State Manufacturing Survey Conditions grew at a solid clip in March 2021
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Business activity grew at a solid clip in New York State, according to firms responding to the March 2021 Empire State Manufacturing Survey. The headline general business conditions index climbed five points to 17.4, its highest level since last summer. New orders increased modestly, and shipments were up substantially. Delivery times continued to lengthen, and inventories were somewhat higher. Employment levels and the average workweek both increased modestly. Input price increases continued to pick up, rising at the fastest pace in nearly a decade, and selling prices increased significantly. Looking ahead, firms remained optimistic that conditions would improve over the next six months, anticipating significant increases in employment.
Enduring Growth
Manufacturing activity grew substantially in New York State in March. The general business conditions index rose five points to 17.4, its ninth consecutive positive reading, and its highest level since July of last year. Thirty-four percent of respondents reported that conditions had improved over the month, while 17 percent reported that conditions had worsened. The new orders index was little changed at 9.1, indicating that orders increased, and the shipments index shot up 17 points to 21.1, its highest level since before the pandemic. Delivery times again rose at the fastest pace in a year, and inventories edged higher.
Input Prices Continue to Accelerate
The index for number of employees was little changed at 9.4, indicating ongoing modest gains in employment, and the average workweek index inched up to 10.9, signaling an increase in hours worked. The prices paid index rose seven points to 64.4, again reaching its highest level in a decade, pointing to sharp input price increases. The prices received index was little changed from last month’s two-year high, pointing to ongoing selling price increases.
Substantial Employment Increases Expected
The index for future business conditions was little changed at 36.4, suggesting that firms remained optimistic about future conditions. The index for future shipments bounced up to 46.5. The index for future inventories rose to a multi-year high, and both the future prices paid and prices received indexes continued to march upward. The index for future employment rose to its highest level in over ten years, suggesting that firms widely expect to increase employment in the months ahead. The capital expenditures index came in at 26.8, and the technology spending index was 20.1.
Posted: March 15, 2021 Monday 08:30 AM