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Empire State Manufacturing Survey Conditions Show A Slight Expansion
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The May 2015 Empire State Manufacturing Survey indicates that business conditions improved slightly for New York manufacturers. The headline general business conditions index climbed four points to 3.1. The new orders index rose ten points to 3.9, and the shipments index was little changed at 14.9. Labor market indicators pointed to a small increase in employment levels but a slight decline in the average workweek. The prices paid index fell ten points to 9.4, its lowest level in nearly three years, and the prices received index edged down to 1.0, indicating that selling prices were flat. The index for future general business conditions fell noticeably, reflecting a positive but less favorable outlook than in April.
A Slight Expansion in Business Activity
The May general business conditions index advanced four points but, at 3.1, indicated that business conditions were only slightly better over the month. Thirty percent of respondents reported that conditions had improved, while 27 percent reported that conditions had worsened. The new orders index, positive for the first time since February, rose ten points to 3.9, indicating a small increase in orders. The shipments index was little changed at 14.9, suggesting that shipments continued to grow at a solid clip. The unfilled orders index, at -11.5, also remained close to last month’s level. The delivery time index fell to -10.4—a sign that delivery times shortened—and the inventories index rose to 7.3, pointing to an increase in inventory levels.
Price Indexes Fall
The indexes for both prices paid and prices received were lower this month. The prices paid index dropped ten points to 9.4, its lowest level in nearly three years, indicating that input price increases slowed. The prices received index retreated three points to 1.0, suggesting that selling prices were flat. Labor market conditions pointed to a small increase in employment but a slight dip in the length of the average workweek: the index for number of employees fell four points to 5.2, while the average workweek index, though up two points, remained negative at -2.1.
Optimism Wanes
The index for future general business conditions fell seven points to 29.8, suggesting a positive but less favorable outlook than last month. The future new orders index held steady at 33.9, and the index for future shipments was little changed at 31.8. All three of these indexes remain well below the levels seen throughout most of 2014. Both indexes for future prices fell, indicating that price increases were expected to be somewhat less widespread in the months ahead. The index for future employment fell six points, but at 16.7, it still suggested that employment levels were expected to rise. The capital expenditures index declined nine points to 15.6, and the technology spending index fell to 1.0.
Posted: May 15, 2015 Friday 08:30 AM