Research >> Economics
Empire State Manufacturing Survey Conditions dropped sharply in January 2024
|
Business activity dropped sharply in New York State, according to firms responding to the January 2024 Empire State Manufacturing Survey. The headline general business conditions index fell twenty-nine points to -43.7, its lowest reading since May 2020. New orders and shipments also posted sharp declines. Unfilled orders continued to shrink significantly, and delivery times continued to shorten. Inventories edged lower. Employment and the average workweek declined modestly. The pace of input price increases picked up somewhat, while the pace of selling price increases was little changed. While firms expect conditions to improve over the next six months, optimism remained subdued.
Headline Index Plummets
Manufacturing activity shrank significantly in New York State, according to the January survey. After falling twenty-four points last month, the general business conditions index shed another twenty-nine points, coming in at -43.7, its lowest level since May 2020. The new orders index fell thirty-eight points to -49.4, and the shipments index fell twenty-five points to -31.3, pointing to a large decline in orders and shipments. The unfilled orders index held steady at -24.2, a sign that unfilled orders continued to fall significantly. The inventories index came in at -7.4, suggesting that inventories shrank modestly, and the delivery times index remained below zero at -8.4, indicating shorter delivery times.
Declines in Employment and Hours Worked
The index for number of employees was little changed at -6.9, and the average workweek index came in at -6.1, pointing to a modest decrease in employment levels and hours worked. The prices paid index climbed seven points to 23.2, signaling a small pickup in input price increases, while the prices received index held steady at 9.5, a sign that selling price increases remained modest.
Optimism Still Subdued
While firms expect some pickup in activity in the months ahead, optimism remained subdued, with the index for future business conditions climbing seven points to 18.8. The capital spending index increased ten points to 13.7, pointing to some improvement in investment plans.
Posted: January 16, 2024 Tuesday 08:30 AM