News

Manufacturing activity in New York state grew modestly in August. The headline general business activity index strengthened from July, rising 6.4 points to 11.9. Meanwhile, the new orders and shipments indexes also increased, to 15.4 from -2.0 and 12.2 from 11.5, respectively. Unfilled orders improved slightly but remained negative, rising from -6.4 to -5.5, while delivery times lengthened from 8.3 to 17.4. Inventories declined notably, plunging from 15.6 to -6.4, but supply availability improved, rising from -11.0 to -5.5.

The index for the number of employees declined from 9.2 to 4.4, while the average employee workweek was relatively unchanged at 0.2. Input prices fell from 56.0 to 54.1, while selling prices also moderated slightly, edging down 2.8 to 22.9 points, a reflection of a slower pace of increase for prices received and prices paid.

Looking forward, firms’ expectations worsened but remained positive. The index for future business activity decreased 8.1 points to 16.0. In the next six months, new orders and shipments are still expected to increase, but at a slightly slower pace than anticipated last month, clocking in at 16.3 and 17.9, respectively. On the other hand, capital spending plans returned to negative territory, falling 10.1 points to -0.9.

Employment expectations remained but declined from 11.0 to 6.9, while the average employee workweek outlook strengthened, rising from -0.9 to 0. Input prices are expected to climb higher, rising from 58.7 to 64.2. On the other hand, selling price expectations ticked down 0.9 points to 41.3. Meanwhile, supply availability is still forecasted to contract in the next six months but at a slower pace than predicted in July.