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Empire State Manufacturing Survey Conditions Continue to Worsen
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The October Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to decline for a third consecutive month. The general business conditions index increased four points but remained negative at -6.2. The new orders index rose five points to -9.0, while the shipments index fell nine points to -6.4, its first negative reading in more than a year. The prices paid index was little changed at 17.2, and the prices received index held steady at 4.3. Employment conditions weakened, with the index for number of employees declining five points to -1.1 and the average workweek index falling three points to -4.3. Indexes for the six-month outlook suggested that conditions were expected to improve, although the level of optimism among manufacturers remained low relative to earlier this year.
In a series of supplementary questions, more respondents reported rising than declining borrowing needs over the past year, by a margin of 26 percent to 17 percent. Looking ahead to the next twelve months, 24 percent of manufacturers indicated that they expected borrowing needs to be higher a year from now, whereas just 10 percent anticipated lower borrowing needs. While the vast majority of respondents reported no change in credit availability—over either the past three months or the past twelve months—almost twice as many manufacturers reported tightening as easing in credit.
The general business conditions index was negative for a third consecutive month in October, pointing to a continued deterioration in business conditions for New York manufacturers. The index rose four points to -6.2, with 25 percent of respondents reporting that conditions had improved over the month and 31 percent reporting that conditions had worsened. The new orders index climbed five points but, at -9.0, remained negative, indicating that orders were continuing to decline. The shipments index fell below zero for the first time in more than a year, dropping nine points to -6.4—a sign that shipments were lower. The unfilled orders index was slightly lower at -18.3. The delivery time index fell six points to -4.3, and the inventories index edged down to -2.2.
Posted: October 15, 2012 Monday 08:30 AM