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Empire State Manufacturing Survey Conditions continued to grow strongly in December 2021
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Business activity continued to grow strongly in New York State, according to firms responding to the December 2021 Empire State Manufacturing Survey. The headline general business conditions index held steady at 31.9. New orders and shipments posted substantial increases, and firms had more unfilled orders. Delivery times lengthened significantly, though less so than last month. Labor market indicators pointed to a solid increase in employment and a longer average workweek. Both price indexes moved somewhat lower but remained near recent record highs. Plans for capital and technology spending were strong. Looking ahead, firms remained optimistic that conditions would improve over the next six months, though optimism is still lower than it was in the fall.
Sturdy Growth Continues
Manufacturing activity grew strongly in New York State, according to the December survey. The general business conditions index held steady at 31.9. Forty-five percent of respondents reported that conditions had improved over the month, while 13 percent reported that conditions had worsened. The new orders index and shipments indexes were both little changed at 27.1, pointing to another month of strong growth in both areas. The unfilled orders index rose six points to 19.0. The delivery times index fell nine points to 23.1, suggesting that delivery times lengthened significantly, but less so than last month. Inventories increased modestly.
Price Increases Remain Substantial
The index for number of employees came in at 21.4, indicating a solid increase in employment, and the average workweek index fell to 12.1, suggesting a modest increase in hours worked. The prices paid index edged down three points to 80.2, and the prices received index fell six points to 44.6, signaling ongoing substantial increases in both input prices and selling prices, though at a slightly slower pace than in November.
Firms Generally Optimistic
Firms were generally optimistic about the six-month outlook, though optimism remained below levels seen in September and October. The index for future business conditions held steady at 36.4. Longer delivery times, higher prices, and increases in employment are all expected in the months ahead. The capital expenditures index climbed three points to 38.0, and the technology spending index moved up to 31.4, suggesting that firms plan significant increases in both capital spending and technology spending.
Posted: December 15, 2021 Wednesday 08:30 AM