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Empire State Manufacturing Survey Conditions held steady in July 2023
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Business activity held steady in New York State, according to firms responding to the July 2023 Empire State Manufacturing Survey. The headline general business conditions index fell six points to 1.1. New orders inched up and shipments expanded. Delivery times shortened and inventories continued to decline. Employment levels edged higher, though the average workweek was little changed. Input and selling price increases continued to moderate. Planned increases in capital spending remained weak. Looking ahead, while firms expect conditions to improve, optimism remained muted.
Activity Holds Steady
Manufacturing activity was little changed in New York State, according to the July survey. The general business conditions index fell six points to 1.1. Twenty-nine percent of respondents reported that conditions had improved over the month, while twenty-seven percent reported that conditions had worsened. The new orders index was little changed at 3.3, indicating that orders edged higher, and the shipments index fell nine points to 13.4, pointing to an increase in shipments, though at a slower pace than last month. At -8.8, the unfilled orders index remained negative for a third straight month, a sign that unfilled orders continued to decline. The inventories index also remained negative at -10.8, indicating that inventories moved lower. The delivery times index came in at -6.9, suggesting that delivery times shortened.
Price Increases Continue to Moderate
The index for number of employees climbed into positive territory for the first time since January and, at 4.7, pointed to a small increase in employment. The average workweek index rose to 0.3, indicating little change in hours worked. Price increases continued to moderate: the prices paid index fell five points to 16.7, and the prices received index fell five points to 3.9. The prices paid index has now fallen nearly fifty points over the past year, and the prices received index has fallen a cumulative twenty-seven points.
Optimism Remains Muted
The index for future business conditions edged down to 14.3, indicating that while conditions are expected to improve, optimism remained subdued. New orders and shipments are expected to increase modestly, delivery times are expected to continue to shorten, and employment is expected to expand modestly. The capital spending index fell five points to 2.9, suggesting that capital spending plans remained soft.
Posted: July 17, 2023 Monday 08:30 AM