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Empire State Manufacturing Survey Conditions Worsened Slightly in June
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The June 2015 Empire State Manufacturing Survey indicates that business conditions worsened slightly for New York manufacturers. The headline general business conditions index fell five points to -2.0, its second negative reading in the past three months. The new orders index fell six points to -2.1, and the shipments index edged down to 12.0. Labor market indicators pointed to a small increase in employment levels and the average workweek. Price indexes were little changed. At 9.6, the prices paid index remained near last month’s multiyear low, and the prices received index held steady at 1.0, indicating that selling prices were flat for a second consecutive month. The index for future general business conditions retreated in June, suggesting that optimism about future business conditions waned.
Business Conditions Decline Slightly
Business conditions worsened marginally for New York manufacturers, according to the June 2015 survey. The general business conditions index dropped five points to -2.0. This index has been hovering near zero for the past three months, suggesting that activity has remained flat since April. Twenty-six percent of respondents reported that conditions had improved, while 28 percent reported that conditions had worsened. After a brief foray into positive territory last month, the new orders index fell back below zero: at -2.1, it indicated a small decline in orders. The shipments index was little changed at 12.0, suggesting that shipments continued to grow steadily. The unfilled orders index advanced seven points but, at -4.8, it pointed to a small decline in unfilled orders. The delivery time index climbed to -1.9, and the inventories index fell to 1.9, suggesting little change in delivery times and inventory levels.
Price Increases Remain Subdued
Price increases continued to be restrained. After reaching a multiyear low last month, the prices paid index was little changed at 9.6, indicating a modest increase in input prices. The prices received index held steady at 1.0—a sign that selling prices remained flat. Labor market conditions pointed to a modest increase in employment and a small increase in hours worked. The index for number of employees edged up three points to 8.7, and the average workweek index climbed six points to 3.9.
Optimism Wanes Further in June
The index for future general business conditions fell for a second consecutive month. The four-point drop, to 25.8, signaled that optimism about the six-month outlook ebbed further in June. The future new orders index fell eight points to 26.1, and the index for future shipments fell ten points to 22.1. The future inventories index plunged twenty points to -17.3, suggesting a widespread belief that inventory levels would decline in the months ahead. Indexes for future prices paid and received were little changed. The index for future employment declined for a third consecutive month but, at 13.5, it still suggested that manufacturers expected employment levels to rise. The capital expenditures index moved down four points to 11.5, and the technology spending index fell to -1.0.
Posted: June 15, 2015 Monday 08:30 AM