Empire State Manufacturing Survey.

Transcription

1 August 218 Empire State Manufacturing Survey Business activity remained robust in New York State, according to firms responding to the August 218 Empire State Manufacturing Survey. The headline general business conditions index climbed three points to New orders and shipments grew strongly, and firms reported an increase in unfilled orders. Delivery times continued to lengthen, and inventories held steady. Labor market indicators pointed to solid gains in employment and longer workweeks. Price indexes were little changed and remained elevated, indicating ongoing significant price increases. Looking ahead, firms stepped up their capital spending plans and were fairly optimistic about the six-month outlook. Growth Remains Strong Manufacturing firms in New York State reported that business activity expanded strongly in August. The general business conditions index rose three points to Forty-two percent of respondents reported that conditions had improved over the month, while 16 percent reported that conditions had worsened. The new orders index was little changed at 17.1, and the shipments index rose eleven points to 25.7 readings that reflected strong growth. Unfilled orders increased, and inventories held steady. The delivery time index rose four points to 1.4, indicating that delivery times continued to lengthen. Price Indexes Remain Elevated The index for number of employees edged lower, but at 13.1, pointed to a pickup in employment levels. The average workweek index was 8.9, indicating a modest increase in hours worked. Price increases remained elevated. The prices paid index inched up to 45.2, and the prices received index came in at 2.. Firms Fairly Optimistic Firms remained moderately optimistic about the six-month outlook, though less so than earlier this year. The index for future business conditions climbed four points to The indexes for future unfilled orders and future delivery times both turned negative, suggesting that businesses expect fewer unfilled orders and shorter delivery times. Employment was expected to increase in the months ahead, and the indexes for future prices remained elevated. The capital expenditures index moved up ten points to 26.7, and the technology spending index rose three points to Seasonally Adjusted Diffusion Index Note: The shaded area indicates a period designated a recession by the National Bureau of Economic Research. Federal Reserve Bank of New York

2 Current Indicators Change from Preceding Month Jul Aug Change 3. New Orders Jul Aug Change -1.1 Shipments Jul Aug Change 11.1 Unfilled Orders Jul Aug Change 11.1 Delivery Time Jul Aug Change 4.4 Inventories Jul Aug Change 4.3 Federal Reserve Bank of New York August 218 2

3 Current Indicators,continued Change from Preceding Month Prices Paid Jul Aug Change 2.5 Prices Received Jul Aug Change -2.2 Number of Employees Jul Aug Change -4.1 Average Employee Workweek Jul Aug Change 3.3 Note: Data are seasonally adjusted. Federal Reserve Bank of New York August 218 3

4 Forward-Looking Indicators Expectations Six Months Ahead Jul Aug Change 3.7 New Orders Jul Aug Change -1.2 Shipments Jul Aug Change 4.2 Unfilled Orders Jul Aug Change -9.7 Delivery Time Jul Aug Change -6.9 Inventories Jul Aug Change -8.6 Federal Reserve Bank of New York August 218 4

5 Forward-Looking Indicators,continued Expectations Six Months Ahead Prices Paid Jul Aug Change 4.6 Prices Received Jul Aug Change -1.5 Number of Employees Jul Aug Change -6.2 Average Employee Workweek Jul Aug Change -4.3 Capital Expenditures Jul Aug Change 9.6 Technology Spending Jul Aug Change 3.2 Note: Data are seasonally adjusted. Federal Reserve Bank of New York August 218 5