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Empire State Manufacturing Survey Conditions edged slightly lower in February 2024
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Business activity edged slightly lower in New York State, according to firms responding to the February 2024 Empire State Manufacturing Survey. The headline general business conditions index rose forty-one points but remained negative at -2.4. New orders declined modestly, while shipments edged higher. Unfilled orders continued to shrink, and delivery times continued to shorten. Inventories declined. Employment levels were little changed, while the average workweek fell. The pace of input price increases picked up for a second straight month, and the pace of selling price increases also steepened. The six-month outlook improved, though optimism remained subdued.
Headline Index Gains Ground, but Remains Negative
On the heels of a significant contraction last month, manufacturing activity shrank further in New York State, according to the February survey. After falling fifty-three points over the prior two months, the general business conditions index shot up forty-one points, but held below zero at -2.4. The new orders index climbed forty-three points to -6.3, pointing to an ongoing decline in orders, though at a slower pace than last month, and the shipments index increased thirty-four points to 2.8, indicating a small increase in shipments. The unfilled orders index came in at -9.6, a sign that unfilled orders continued to fall. The inventories index was little changed at -9.6, suggesting that inventories shrank modestly, and the delivery times index remained negative at -3.2, indicating shorter delivery times.
Employment Holds Steady
The index for number of employees climbed to a level of around zero, suggesting employment levels were unchanged, while the average workweek index came in at -4.7, pointing to a small decline in hours worked. The prices paid index moved higher for a second consecutive month, rising ten points to 33.0, and the prices received index climbed eight points to 17.0, pointing to a pickup in both input and selling price increases.
Optimism Improves
Firms expect activity to grow over the next six months, though optimism remained subdued. The index for future business conditions edged up three points to 21.5. The capital spending index was little changed at 11.7, suggesting capital spending plans remained somewhat soft.
Posted: February 15, 2024 Thursday 08:30 AM