Manufacturing Activity in New York Slows in August

 Manufacturing activity in New York state expanded at a slower pace in September, with the headline business conditions index declining 13.0 points to 7.6. The new orders index fell 15.3 points to 2.0, while the shipments index turned negative, decreasing 14.9 points to -3.2. The unfilled orders index dropped 9.6 points to 5.9, while inventories jumped 14.1 points to 8.9. Delivery times lengthened and supply availability worsened, but both at slower paces.

Employment increased at a faster pace in September, with the index for the number of employees moving up 1.3 points to 10.6. At the same time, the average employee workweek rose to 17.0 from 6.9, signaling a larger increase in hours worked in September. The prices paid and prices received indices both grew, stepping up from 58.6 to 63.1 and from 22.7 to 28.1, respectively.

In September, firms’ optimism regarding the future weakened slightly, with the future business activity index decreasing 3.1 points to 29.0. In the next six months, new orders are expected to rise at a slower pace compared to the prior month at 25.3. The future employment index fell 8.2 points to 20.0, suggesting a slower pace of employment growth over the next six months. Meanwhile, input prices are expected to rise at a faster pace, moving up from 57.7 to 67.3, while selling prices are anticipated to increase at a slower pace, decreasing from 48.7 to 42.3. At the same time, capital spending plans weakened slightly in September, ticking down from 16.5 to 14.9.