Research >> Economics
Empire State Manufacturing Survey Conditions Marginally Improve
|
The April 2013 Empire State Manufacturing Survey indicates that conditions for New York manufacturers improved slightly. The general business conditions index fell six points, but at 3.1, remained positive for a third consecutive month. Similarly, the new orders index was lower than last month but still positive, dipping six points to 2.2, and the shipments index fell to 0.8. The indexes for both prices paid and prices received inched higher—a sign that the pace of input and selling price increases had picked up over the month. Employment indexes climbed, showing a modest increase in both employment levels and hours worked. Indexes for the six-month outlook pointed to a moderate degree of optimism about future conditions.
In a series of supplementary questions—previously posed in surveys conducted in April 2012 and earlier—respondents were asked how much difficulty they had experienced finding workers proficient in mathematical, computer, interpersonal, and other workplace skills. As in the earlier surveys, the most widespread difficulties related to the search for workers with advanced computer skills. In addition, a skill set that has reportedly grown harder to find is punctuality and reliability. Responses to other supplemental questions indicated that firms expected wages to rise by roughly 2½ percent, on average, over the next twelve months, and that, for nearly a third of firms, retaining skilled workers would become increasingly difficult in the year ahead.
Business Conditions Marginally Improve
The general business conditions index was positive for a third consecutive month, though at 3.1, it suggested that conditions had improved only slightly. Twenty-five percent of respondents reported that conditions had improved over the month, while 22 percent reported that conditions had worsened. The new orders index posted a similar decline, falling six points to 2.2—an indication that orders were just slightly higher. The shipments index, down seven points to 0.8, showed that shipments were little changed. The unfilled orders index inched down a point to -3.4, and the delivery time index also fell one point to -3.4. The inventories index held steady at -4.6, indicating that inventory levels fell slightly.
Price Increases Pick Up a Touch
The indexes for both prices paid and prices received rose a few points, suggesting that both input prices and selling prices increased at a somewhat faster pace this month. The prices paid index rose three points to 28.4, its highest level in several months. The prices received index rose four points to 5.7. Employment indexes pointed to some firming in labor market conditions. The index for number of employees rose four points to 6.8, indicating a modest increase in employment levels, and the average workweek index rose six points to 5.7, indicating a modest increase in hours worked.
Future Conditions Expected to Improve
Indexes for the six-month outlook pointed to a moderate level of optimism about future business activity. The future general business conditions index fell four points to 32.0, while the future new orders and future shipments indexes were little changed from last month’s relatively strong levels. The future prices paid and future prices received indexes fell, suggesting that future prices increases were expected to be somewhat slower in the months ahead. The indexes for expected number of employees and average workweek climbed, conveying an expectation that employment would expand. The capital expenditures index rose five points to 20.5, and the technology spending index fell six points to 12.5.
Posted: April 15, 2013 Monday 08:30 AM