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Empire State Manufacturing Survey Conditions Remain Weak
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The Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to deteriorate in October. The general business conditions index remained negative and, at -8.5, was little changed. The new orders index hovered around zero, indicating that orders were flat, while the shipments index rose above zero to 5.3. The inventories index stayed below zero, a sign that inventories declined. The indexes for both prices paid and prices received fell, but remained positive, suggesting that price increases moderated. The index for number of employees rose several points but was at a relatively low level of 3.4, while the average workweek index was negative for a fifth consecutive month. The future general business conditions index dropped six points to 6.7, its lowest level since early 2009, while future indexes for prices paid and prices received declined.
Asked a series of supplementary questions about borrowing needs and credit availability, firms noted some tightening in credit conditions but a modest decline in borrowing costs, on net, over the past three months. When these questions were last posed in March, survey responses had indicated an increase in borrowing costs. In response to a new question about credit applications, roughly three in four respondents indicated that they had not applied for credit over the past three months.
Business Conditions Remain Weak
The general business conditions index was negative for a fifth consecutive month, and at -8.5, adhered closely to the level it had held since June. Seventeen percent of respondents reported that conditions had improved over the month, while 26 percent reported that conditions had worsened. After a series of negative readings from June through September, the new orders index rose to 0.2 in October—an indication that orders were unchanged after declining for a number of months. The shipments index advanced eighteen points, rising above zero to 5.3 and signaling an increase in shipments. The unfilled orders index inched upward, but remained below zero at -4.5. The delivery time index was unchanged at -1.1. The inventories index also remained below zero and, at -9.0, indicated a modest decline in inventory levels.
Posted: October 17, 2011 Monday 08:30 AM