Research >> Economics
Empire State Manufacturing Survey Conditions edged up February
|
The February 2016 Empire State Manufacturing Survey indicates that business activity continued to decline for New York manufacturers. The headline general business conditions index edged up three points, but remained firmly in negative territory at -16.6. The new orders and shipments indexes indicated an ongoing decline in both orders and shipments. Price indexes suggested a slight increase in input prices and a small drop in selling prices. Employment levels steadied, while the average workweek index pointed to a decrease in hours worked. The six-month outlook remained weak, with the index for future general business conditions up only slightly from last month’s multi-year low.
Business Activity Continues to Contract
Business activity declined for a seventh consecutive month for New York manufacturing firms, according to the February 2016 survey. After dropping to its lowest level since the Great Recession in January, the general business conditions index edged up three points to -16.6. The new orders index climbed twelve points to -11.6, indicating that orders fell, though at a slower pace than last month. The shipments index rose three points to -11.6—a sign that shipments continued to slide. The unfilled orders index advanced four points to -6.9. The delivery time index rose eleven points to -2.0 and the inventories index came in at zero, suggesting that delivery times held steady and inventories leveled off.
Employment Levels Unchanged
The prices paid index dropped thirteen points to 3, indicating a slight increase in input prices. The prices received index, down nine points to -5.0, suggested a small decline in selling prices. The index for number of employees rose twelve points to -1.0, indicating that employment levels were flat, and the average workweek index held steady at -6.0, signaling that the average workweek shortened.
Optimism Remains Subdued
After falling sharply last month, indexes for the six-month outlook revealed that optimism about future business conditions remained weak. The index for future business conditions rose five points to 14.5. The indexes for future new orders and future shipments recovered somewhat after their steep declines in January, rising modestly to readings in the low 20s. Employment was expected to increase, with the index for expected number of employees climbing to 16.8. The capital expenditures index held steady at 12.9, and the technology spending index edged down to 5.9
Posted: February 16, 2016 Tuesday 08:30 AM