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Empire State Manufacturing Survey Conditions was little changed in June 2022
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Business activity was little changed in New York State, according to firms responding to the June 2022 Empire State Manufacturing Survey. The headline general business conditions index rose ten points to -1.2. New orders and shipments edged slightly higher, and unfilled orders declined for the first time in over a year. Delivery times lengthened at a slower pace than in recent months, and inventories grew significantly. Labor market indicators pointed to a solid increase in employment and a longer average workweek. The prices paid index moved higher, and the prices received index edged lower, but both remained elevated. Looking ahead, optimism about the six-month outlook remained muted.
After declining last month, manufacturing activity held steady in New York State, according to the June survey. The general business conditions index climbed ten points to -1.2. Twenty-eight percent of respondents reported that conditions had improved over the month, and twenty-nine percent reported that conditions had worsened. After plunging below zero last month, the new orders and shipments indexes climbed into positive territory, pointing to a small increase in both areas. The unfilled orders index fell to -4.3, its first negative reading in over a year, indicating that unfilled orders shrank. The delivery times index fell six points to 14.5, suggesting that delivery times lengthened, though at the slowest pace in over a year. The inventories index rose nine points to 17.1, indicating that inventories expanded.
Employment Grows Solidly
The index for number of employees increased five points to 19.0, pointing to a solid increase in employment, and the average workweek index came in at 6.4, indicating a small increase in hours worked. The prices paid index rose five points to 78.6, several points below its recent record high, and the prices received index edged down to a still elevated 43.6, signaling ongoing substantial increases in both input prices and selling prices.
Optimism Remains Subdued
Optimism about future conditions was subdued for a third consecutive month. The index for future business conditions fell four points to 14.0. Delivery times are expected to decline over the next six months, as are unfilled orders, while increases in prices and employment are expected to continue in the months ahead. Capital spending and technology spending plans remained firm.
Posted: June 15, 2022 Wednesday 08:30 AM