Research >> Economics
Empire State Manufacturing Survey Conditions edged lower in October 2023
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Business activity edged lower in New York State, according to firms responding to the October 2023 Empire State Manufacturing Survey. The headline general business conditions index fell seven points to -4.6. New orders fell slightly, while shipments were little changed. Unfilled orders declined, and delivery times shortened. Inventories held steady. Labor market indicators pointed to a slight increase in both employment and the average workweek. The pace of input price increases was similar to last month, while selling price increases moderated. Looking ahead, firms remained relatively optimistic about the six-month outlook.
Activity Slightly Lower
Manufacturing activity declined slightly in New York State, according to the October survey. The general business conditions index fell seven points to -4.6. Twenty-four percent of respondents reported that conditions had improved over the month, while twenty-nine percent reported that conditions had worsened. The new orders index dropped nine points to -4.2, pointing to a small decline in orders, and the shipments index fell eleven points to 1.4, a sign that shipments were little changed. The unfilled orders index fell to -19.1, indicating that unfilled orders fell significantly. The inventories index remained below zero at -2.1, pointing to a small decline in inventories. The delivery times index moved down to -6.4, suggesting delivery times shortened.
Employment Ticks Up
The index for number of employees rose six points to 3.1, and the average workweek index edged up to 2.2, indicating a slight increase in employment levels and hours worked. The prices paid index held steady at 25.5, reflecting little change in the pace of input price increases, while the prices received index fell eight points to 11.7, signaling a deceleration of input price increases.
Firms Remain Fairly Optimistic
The index for future business conditions moved down three points to 23.1, suggesting that firms remained relatively optimistic about future conditions. However, less than half of respondents expect conditions to improve over the next six months. New orders and shipments are expected to increase, though less so than last month, and employment is expected to grow. The capital spending index was little changed at 9.6, suggesting that capital spending plans remained somewhat weak.
Posted: October 16, 2023 Monday 08:39 AM