Research >> Economics
Empire State Manufacturing Survey Conditions grew at a slower pace in October 2021
|
Business activity grew at a solid pace in New York State, according to firms responding to the October 2021 Empire State Manufacturing Survey. The headline general business conditions index fell fifteen points to 19.8, pointing to a slower pace of growth than last month. New orders and shipments increased, though by less than they did last month. The delivery times index inched up to a record high. Labor market indicators pointed to ongoing growth in employment and the average workweek. Both the prices paid and prices received indexes held near record highs. Looking ahead, firms were still very optimistic that conditions would improve over the next six months.
Growth Remains Solid
Manufacturing activity continued to grow at a solid clip in New York State, according to the October survey. The general business conditions index fell fifteen points to 19.8. Thirty-nine percent of respondents reported that conditions had improved over the month, while nearly 20 percent reported that conditions had worsened. The new orders index declined nine points to 24.3, and the shipments index moved down eighteen points to 8.9, indicating that growth slowed in both orders and shipments. The unfilled orders index was little changed at 18.5. The delivery times index inched up to a record high of 38.0, indicating significantly longer delivery times. Inventories increased modestly.
Ongoing Widespread Price Increases
The prices paid index rose three points to 78.7 and the prices received index fell four points to 43.5, with both indexes holding near record highs. The index for number of employees came in at 17.1 and the average workweek index declined nine points to 15.3, pointing to ongoing gains in employment and hours worked.
Outlook Improves
The index for future business conditions increased four points to 52.0, indicating continuing optimism about the six-month outlook. New orders and shipments are both expected to increase strongly in the months ahead. Substantial increases in employment and prices are also expected. Both capital spending and technology spending increased significantly.
Posted: October 15, 2021 Friday 08:30 AM