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Empire State Manufacturing Survey Conditions Continue to Improve
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The Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to improve in March. The general business conditions index inched up 2 points, to 17.5. The new orders and shipments indexes fell but remained above zero, while the unfilled orders index rose above zero for the first time in a year. Price indexes continued to climb, suggesting that price increases had accelerated. Employment indexes were positive and above their February levels, indicating that employment had expanded. Future indexes were little changed, as respondents continued to be strongly optimistic about the six-month outlook, although future price indexes were sharply higher.
In a series of supplementary questions, manufacturers were asked about recent and expected changes in firms' borrowing needs, changes in credit availability, and the effects of such changes. As in the parallel survey conducted last October, respondents generally reported steady borrowing needs—both over the past year and over the past three months. Looking ahead, firms indicated that they expected borrowing needs to increase somewhat, on balance, over the next year. On the issue of changes in credit availability, respondents reported steady to slightly tighter conditions—both over the past three months and over the past year. Moreover, nearly a third of those surveyed reported that borrowing costs had risen over the past three months, while just 3 percent said they had declined.
Business Activity Continues to Expand
The general business conditions index edged up two points, to 17.5, in March—a sign that manufacturing activity had expanded at a moderate pace over the month. Thirty-two percent of respondents indicated that business conditions had improved, a slightly lower percentage than in February, while 14 percent said that conditions had worsened, down from 21 percent last month. The new orders index fell six points, but remained above zero, suggesting that the expansion of orders was continuing but at a slower pace this month. The shipments index fell 10 points to 1.6, indicating that shipments were little changed. The unfilled orders index climbed above zero for the first time in a year, rising to 2.6—evidence of a small increase in unfilled orders. The delivery time index held steady at -1.3, and the inventories index fell six points, to 3.9.
Posted: March 15, 2011 Tuesday 08:30 AM