News

Manufacturing activity in New York state declined in September for the first time since June, with the headline general business conditions index falling nearly 21 points to -8.7. The new orders index plummeted 35 points to -19.6, while the shipments index dropped nearly 30 points to -17.3, the lowest levels for both indexes since April 2024, indicating significant reductions in orders and shipments. Unfilled orders decreased further, from -5.5 to -6.9, while inventories increased 1.5 points to -4.9 in September, indicating that business inventories continue to shrink but at a slightly slower pace. Delivery times stayed the same, but supply availability slipped 3.3 points to -8.8.

Employment declined slightly in September, with the index for the number of employees coming in at -1.2. Meanwhile, the average employee workweek dipped to -5.1 from 0.2 in August, signaling a modest drop in hours worked. The prices paid index fell 8 points to 46.1 while the prices received index also moderated slightly, declining 1.3 points to 21.6, a reflection of a slower pace of increase for prices received and prices paid.

Firms’ optimism regarding the future remained positive but subdued in September. The future business activity index stepped down 1.2 points to 14.8. In the next six months, new orders are still expected to increase, and at roughly the same pace anticipated last month, clocking in at 16.6. The future employment index fell to 1.2, suggesting that employment levels are not expected to grow meaningfully over the next six months. Input prices are expected to still climb but at a slower pace, falling from 64.2 to 57.8. On the other hand, selling price expectations ticked up 1.8 points to 43.1. Capital spending plans remained soft, falling 3 points to -3.9.