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Empire State Manufacturing Survey Conditions Improved
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The Empire State Manufacturing Survey indicates that conditions improved in October for New York State manufacturers. The general business conditions index rose 12 points, to 15.7. The new orders and shipments indexes were also positive and well above their September levels. The inventories index dipped below zero, falling to its lowest level since January. The indexes for prices paid and prices received rose. The index for number of employees climbed for a third consecutive month, although the average workweek index dipped slightly. Future indexes turned up noticeably in October, with the future general business conditions index rising 9 points and the future number of employees index advancing 10 points.
In a series of supplementary questions, firms were asked about borrowing needs, perceived changes in credit availability, and related issues. On balance, respondents reported little change in borrowing needs—over the past twelve months or over the past three months. Similarly, a majority of respondents reported no change in credit availability over the same two intervals; 14 percent indicated that credit had tightened in the past three months, while just 5 percent noted some easing in credit. These results are not substantially different from those of the March 2010 survey, which had asked the same questions.
Business Activity Picks Up
The general business conditions index climbed 12 points to 15.7, a clear gain over the relatively low but positive readings seen from July through September. This month, 35 percent of respondents—roughly the same share as in September—reported that conditions had improved over the month, while
20 percent reported that conditions had worsened, a significantly lower percentage than last month. The new orders index moved up 9 points, to 12.9. After turning negative in August and September, the shipments index rose above zero, climbing 20 points to 19.4. The unfilled orders index rose for a third consecutive month, but remained just below zero at -1.7. The delivery time index advanced several points, but also remained negative, suggesting that delivery times continued to shorten. The inventories index turned negative, falling 13 points to -11.7, its lowest level since January, indicating that inventory levels declined over the past month.
Posted: October 15, 2010 Friday 08:30 AM