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Empire State Manufacturing Survey Conditions continued to expand at significantly slower pace in August 2021
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Business activity continued to expand in New York State, according to firms responding to the August 2021 Empire State Manufacturing Survey, though growth was significantly slower than last month’s record-setting pace. The headline general business conditions index fell twenty-five points to 18.3. New orders increased modestly, and shipments grew slightly. Delivery times continued to lengthen substantially, and inventories were somewhat higher. Employment and the average workweek increased modestly. Input prices continued to rise sharply, and the pace of selling price increases set another record. Looking ahead, firms remained optimistic that conditions would improve over the next six months, with substantial increases in employment and prices expected.
Growth Slows
Manufacturing activity continued to increase in New York State, according to the August survey, but growth was much slower than in July. The general business conditions index fell twenty-five points to 18.3. Just over one-third of respondents reported that conditions had improved over the month, while 16 percent reported that conditions had worsened. The new orders index fell eighteen points to 14.8, pointing to a solid increase in orders, while the shipments index tumbled nearly forty points to 4.4, suggesting a slight increase in shipments. Unfilled orders rose. The delivery times index climbed to 28.3, indicating significantly longer delivery times, as has been the case for the past several months. Inventories edged higher.
Selling Price Increase Sets Another Record
The index for number of employees dipped eight points to 12.8, and the average workweek index dropped to 8.9, indicating a modest increase in employment and hours worked. Both price indexes remained at or near record highs: the prices paid index held steady at 76.1, while the prices received index climbed seven points to 46.0, setting a new record.
Firms Remain Optimistic
The index for future business conditions climbed seven points to 46.5, pointing to ongoing optimism about future conditions. The indexes for future new orders and shipments rose to similar levels. Substantial increases in employment and prices are expected in the months ahead. The capital expenditures index was little changed at 23.0, and the technology spending index held steady at 15.0.
Posted: August 16, 2021 Monday 08:30 AM