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Empire State Manufacturing Survey Conditions declined in December 2022
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Business activity declined in New York State, according to firms responding to the December 2022 Empire State Manufacturing Survey. The headline general business conditions index fell sixteen points to -11.2. New orders moved slightly lower, while shipments edged higher. Delivery times and inventories were little changed. Labor market indicators pointed to a moderate increase in employment, but a slightly shorter average workweek. Input prices and selling prices increased at about the same pace as last month. Looking ahead, firms expect some improvement in business conditions over the next six months, but optimism was very subdued.
Conditions Deteriorate
Manufacturing activity contracted in New York State, according to the December survey. The general business conditions index fell sixteen points to -11.2. Twenty-three percent of respondents reported that conditions had improved over the month, and thirty-four percent reported that conditions had worsened. The new orders index held steady at -3.6, pointing to another small decline in orders, while the shipments index slipped three points to 5.3, indicating a small increase in shipments. The unfilled orders index moved down to -11.2, a sign that unfilled orders were lower. The delivery times index came in at 1.9, indicating that delivery times were little changed. After rising sharply last month, the inventories index retreated to 3.7, pointing to a small increase in inventories.
Employment Continues to Grow
Despite the overall decline in activity, the index for number of employees edged up to 14.0, marking another month of employment gains. The average workweek index, however, fell to -4.5, signaling a small decline in hours worked. The pace of price increases was little changed, with the prices paid index holding steady at 50.5 and the prices received index remaining similar to last month’s level at 25.2.
Firms Expect Little Improvement
The index for future business conditions climbed twelve points, but remained subdued at 6.3, suggesting that firms expect little improvement over the next six months. The indexes for future new orders and shipments climbed above zero, indicating that small increases are anticipated, and employment is expected to continue to increase. The capital spending index rose nine points to 23.4.
Posted: December 15, 2022 Thursday 08:30 AM