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Empire State Manufacturing Survey Conditions was little changed in September 2023
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Business activity was little changed in New York State, according to firms responding to the September 2023 Empire State Manufacturing Survey. The headline general business conditions index rose twenty-one points to 1.9. New orders and shipments increased. Delivery times remained steady, and inventories continued to contract. Labor market indicators pointed to a slight decline in employment levels and the average workweek. The pace of input price increases was similar to last month, while selling price increases picked up. Looking ahead, firms continued to grow more optimistic about the six-month outlook.
Activity Steadies
Manufacturing activity held steady in New York State, according to the September survey. After dropping sharply last month, the general business conditions index reversed course and climbed twenty-one points to 1.9. Twenty-seven percent of respondents reported that conditions had improved over the month, while twenty-five percent reported that conditions had worsened. The new orders index shot up twenty-five points to 5.1, and the shipments index also rose twenty-five points to 12.4, pointing to an increase in orders and shipments. The unfilled orders index remained below zero at -5.2, a sign that unfilled orders continued to decline. Similarly, the inventories index came in at -6.2, indicating that inventories contracted again. The delivery times index ticked up to 2.1, suggesting little change in delivery times.
Labor Market Indicators Soft
The index for number of employees came in at -2.7, indicating a slight decline in employment levels, and the average workweek index edged up to -5.0, indicating another monthly decline in hours worked. The prices paid index held steady at 25.8, pointing to little change in the pace of input price increases, while the prices received index rose seven points to 19.6, signaling a modest pickup in the pace of selling price increases.
Optimism Continues to Grow
The index for future business conditions rose six points to 26.3, its highest level in more than a year, suggesting that firms have become more optimistic about future conditions. New orders and shipments are expected to increase significantly in the months ahead, and employment is expected to grow. The capital spending index edged down to 10.3, suggesting that capital spending plans remained somewhat weak.
Posted: September 15, 2023 Friday 08:30 AM