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Empire State Manufacturing Survey Conditions grew strongly in April 2021
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Business activity grew strongly in New York State, according to firms responding to the April 2021 Empire State Manufacturing Survey. The headline general business conditions index climbed nine points to 26.3, a multi-year high. New orders and shipments grew at a solid clip, and unfilled orders increased. Delivery times were the longest on record, and inventories were notably higher. Employment levels and the average workweek both expanded modestly. Input prices rose at the fastest pace since 2008, and selling prices climbed at a record-setting pace. Looking ahead, firms remained optimistic that conditions would improve over the next six months, expecting significant increases in employment and prices.
Robust Growth
Manufacturing activity grew at a sturdy pace in New York State in April. The general business conditions index rose nine points to 26.3, its highest level since well before the pandemic began. Thirty-nine percent of respondents reported that conditions had improved over the month, while 12 percent reported that conditions had worsened. The new orders index shot up eighteen points to 26.9 and the shipments index climbed to 25.0, pointing to strong gains in orders and shipments. Unfilled orders were notably higher. The delivery times index surged seventeen points to 28.1, breaking the previous record by twelve points, pointing to significantly longer delivery times. Inventories moved higher.
Selling Prices Rise at a Record-Setting Pace
The index for number of employees increased five points to 13.9, and the average workweek index edged up to 12.7, indicating ongoing gains in employment and hours worked. The prices paid index rose ten points to 74.7, its highest level since 2008, pointing to sharp input price increases. The prices received index rose eleven points to 34.9, a record high, indicating that selling prices increased at the fastest pace in more than twenty years.
Further Price Increases and Strong Employment Growth Expected
The index for future business conditions rose three points to 39.8, suggesting that firms remained optimistic about future conditions. The indexes for future new orders and shipments both came in above 40. The indexes for future prices paid and future prices received continued to march upward. The index for future employment climbed to a record high, with close to half of firms expecting to increase employment in the months ahead. The capital expenditures index rose to 31.5, and the technology spending index came in at 21.9.
Posted: April 15, 2021 Thursday 08:30 AM