Manufacturing Surveys Show Mixed Results
The Empire State Manufacturing Survey showed “modest” growth in New York state this month (Federal Reserve Bank of New York). The headline index climbed more than 19 points to 10.7, which is the third positive result within the past four months.
New orders and shipments: The new orders index rose to 3.7 while the shipments index climbed to 14.4, after both dropped in September.
Employment: The index for number of employees increased to 6.2, indicating a small rise in employment, though the average employee workweek index remained negative at -4.1, indicating a decline in hours worked.
Prices: Both indexes for prices increased. The prices paid index increased 6 points to 52.4, while the prices received index also rose 6 points to 27.2, indicating prices are rising at a faster pace.
Optimism up: The index for future general business conditions hit a high point for the past few months, suggesting that firms are growing more optimistic.
- Businesses expected new orders and shipments to increase, though they also predicted further price increases.
Philadelphia: Meanwhile, the Federal Reserve Bank of Philadelphia’s survey showed a blend of positive and negative readings for October.
- Its index for current general business activity dropped 36 points to -12.8, the lowest point since April.
New orders and shipments: The shipments index decreased 20.1 points to 6.0, remaining positive. However, the new orders index rose nearly 6 points to 18.2.
Employment: Firms in the region generally reported increased hiring, though the employment index slipped 1 point to 4.6.
Prices: The prices paid index advanced 2.4 points to 49.2 in October, while the prices received index rose 8 points to 26.8 following a decline in September.
More optimistic: Firms were slightly more upbeat about the future, with the index for future general business activity rising 4.7 points to 36.2. Expectations for new orders and shipments both grew, while expectations for price increases declined slightly, though they still remained elevated.