Research >> Economics
Empire State Manufacturing Survey Conditions continued to decline in March 2024
|
Business activity continued to decline in New York State, according to firms responding to the March 2024 Empire State Manufacturing Survey. The headline general business conditions index fell nineteen points to -20.9. Demand softened as new orders declined significantly, and shipments were lower. Unfilled orders continued to shrink, and delivery times were little changed. Inventories declined. Labor market indicators weakened, as employment and hours worked both decreased. The pace of input price increases moderated somewhat, while the pace of selling price increases held steady. Firms expect conditions to improve over the next six months, though optimism remained subdued.
Activity Continues to Shrink
Manufacturing activity contracted in New York State, according to the March survey. The general business conditions index fell nineteen points to -20.9. The new orders index fell eleven points to -17.2, and the shipments index moved down ten points to -6.9, pointing to a decline in orders and shipments. The unfilled orders index held steady at -10.9, a sign that unfilled orders continued to fall. The inventories index was little changed at -12.9, suggesting that inventories were lower, and the delivery times index came in at -1.0, indicating that delivery times held steady.
Labor Market Indicators Weaken
The index for number of employees fell seven points to -7.1, and the average workweek index fell six points to -10.4, pointing to a modest decline in employment levels and hours worked. The prices paid index edged down four points to 28.7, indicating that input price increases slowed, and the prices received index was unchanged at 17.8.
Optimism Remains Muted
Firms expect conditions to improve over the next six months, though optimism continued to be subdued. The index for future business conditions held steady at 21.6. The capital spending index was little changed at 11.9, suggesting capital spending plans remained somewhat soft.
Posted: March 15, 2024 Friday 08:30 AM