New York Factory Activity Rebounds as Orders and Shipments Hit Their Strongest Pace Since 2023
Manufacturing activity in New York state expanded in April, with the headline business conditions index rising 11.2 points to 11.0. The new orders index increased 12.9 points to 19.3, while the shipments index soared 27.1 points to 20.2, the highest level for both indexes since 2023. Unfilled orders decreased 1.7 points to 9.1, while inventories moved down 1.8 points to 5.1, indicating business inventories are growing but at a slower pace. Delivery times shortened, ticking down 1.6 points to 12.1, and supply availability worsened, declining 6.2 points to -10.1.
Employment increased in April, with the index for the number of employees rising 4.0 points to 9.8. At the same time, the average employee workweek jumped to 13.7 from 1.9, signaling a significant increase in hours worked in April. The prices paid index rose 14.4 points to 51.0, while the prices received index edged up 0.4 points to 21.8, reflecting a faster pace of increase in both prices paid and prices received.
In April, firms’ optimism regarding the future declined but remained positive, with the future business activity index falling 11.4 points to 19.6. In the next six months, new orders are expected to rise but at a slower pace compared to the prior month at 24.8. The future employment index moved down 4.1 points to 18.1, suggesting an anticipated slower pace of employment growth over the next six months. Meanwhile, input and selling price expectations are forecasted to increase at a faster pace, rising from 43.1 to 61.6 and from 32.4 to 38.6, respectively. Furthermore, capital spending plans weakened in April, falling from 21.6 to 13.1.