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Empire State Manufacturing Survey Conditions declined in August 2023
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Business activity declined in New York State, according to firms responding to the August 2023 Empire State Manufacturing Survey. The headline general business conditions index fell twenty points to -19.0. New orders and shipments fell significantly. Delivery times were steady, and inventories moved lower. Labor market indicators pointed to steady employment levels but a shorter average workweek. Input and selling price increases picked up, and capital spending plans firmed somewhat. Looking ahead, firms grew more optimistic about the six-month outlook.
Activity Falls
Manufacturing activity declined in New York State, according to the August survey. The general business conditions index fell twenty points to -19.0, its first negative reading since May. Sixteen percent of respondents reported that conditions had improved over the month, while thirty-five percent reported that conditions had worsened. The new orders index fell twenty-three points to -19.9, and the shipments index dropped twenty-six points to -12.3, pointing to a moderate decline in orders and shipments. The unfilled orders index remained negative at -6.8, a sign that unfilled orders continued to decline. The inventories index also remained negative at -9.7, indicating that inventories moved lower. The delivery times index came in at 1.9, suggesting delivery times were steady.
Price Increases Pick Up, but from Low Levels
The index for number of employees came in at -1.4, indicating little change in employment levels. The average workweek index fell to -10.7, indicating a decline in hours worked. Both the input and selling price indexes moved up several points, but from relatively low levels, pointing to a modest pickup in the pace of price increases.
Firms Becoming More Optimistic
The index for future business conditions rose six points to 19.9, its highest level in more than a year, suggesting firms have become more optimistic about future conditions. New orders and shipments are expected to increase significantly, and employment is expected to grow considerably. Input price increases are expected to pick up. The capital spending index climbed eleven points to 13.6, suggesting that capital spending plans firmed somewhat.
Posted: August 15, 2023 Tuesday 08:30 AM