Manufacturing in New York Surges in October

Manufacturing activity in New York state expanded at a faster pace in October, with the headline business conditions index surging 17.9 points to 25.5. The new orders index climbed 21.2 points to 23.2, while the shipments index turned positive, increasing 16.3 points to 13.1. The unfilled orders index rose 8.1 points to 14.0, while inventories stepped up 2.7 points to 11.6. Delivery times lengthened, and supply availability worsened.

Employment increased at a slightly slower pace in October, with the index for the number of employees inching down 0.3 points to 10.3. At the same time, the average employee workweek index fell to 9.1 from 17.0, signaling a smaller increase in hours worked in October. The prices paid index grew at a slower pace, declining 3.6 points to 59.5, while the prices received index rose at a faster pace, stepping up 2.5 points to 30.6.

Firms remained optimistic about the six-month outlook, though expectations softened in October, with the future business activity index decreasing 8.0 points to 21.0. The future new orders index declined to 22.4, suggesting slower anticipated growth over the next six months. The future employment index edged down 0.5 points to 19.5, signaling a slightly slower anticipated pace of employment growth over the next six months. Meanwhile, both input and selling prices are expected to rise at a faster pace, moving up from 67.3 to 70.9 and from 42.3 to 48.0, respectively. At the same time, capital spending plans weakened slightly in October, ticking down from 14.9 to 14.0.