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Empire State Manufacturing Survey Conditions Stabilize in March
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The March 2016 Empire State Manufacturing Survey indicates that business activity steadied for New York manufacturers. The headline general business conditions climbed seventeen points to 0.6, its first positive reading since July of last year. The new orders and shipments indexes rose well above zero for the first time in several months, pointing to an increase in both orders and shipments. Price indexes suggested a slight increase in input prices and a small decline in selling prices. Labor market conditions were little changed, with employment and the average workweek holding fairly steady. The six-month outlook improved, with the index for future new orders rising to its highest level in more than a year.
Business Conditions Stabilize
Business activity steadied for New York manufacturing firms, according to the March 2016 survey. After seven months in negative territory, the general business conditions index climbed seventeen points to 0.6. Twenty-five percent of respondents reported that conditions had improved over the month, while roughly the same percentage reported that conditions had worsened. The new orders index posted a steep gain of twenty-one points, rising to 9.6—a positive reading that marked the first time orders had increased in several months. The shipments index shot up twenty-five points to 13.9, signaling an increase in shipments, and the unfilled orders index edged up three points to -4.0. The delivery time index inched down to -4.0. The inventories index fell to -6.9, suggesting a decline in inventory levels.
Employment Little Changed
The prices paid index held steady at 3.0, indicating a slight increase in input prices. At -6.0, the prices received index pointed to a small decline in selling prices. The index for number of employees edged down to -2.0, indicating that employment levels remained fairly steady, and the average workweek index rose to 2.0, a sign that the average workweek was also little changed.
Improvement Expected
Indexes for the six-month outlook indicated that conditions are expected to improve in the months ahead. The index for future business conditions climbed eleven points to 25.5. The index for future new orders advanced seventeen points to 38.9, its highest level in more than a year, and the index for future shipments rose ten points to 33.3. The capital expenditures index moved up three points to 15.8, and the technology spending index rose to 9.9.
Posted: March 15, 2016 Tuesday 08:30 AM