News

Manufacturing activity in New York state improved dramatically in February, with the headline general business activity index rising 18.3 points to 5.7. The new orders index jumped 20.0 points to 11.4, while the shipments index rose 15.9 points to 14.2, reflecting significant improvements in both orders and shipments. Unfilled orders increased to 1.1 from -4.7, and inventories inched up from 5.8 to 8.7. Delivery times lengthened slightly, rising 1.9 points to 5.4, while supply availability was slightly lower, slipping to -2.2 from 0.0.

Employment decreased slightly in February, with the index for the number of employees falling from 1.2 to -3.6. The average employee workweek rose to -1.2, signaling that there was no significant change in hours worked. Both input and selling price increases picked up markedly, as reflected in the prices paid index rising 11.1 points to 40.2, the fastest pace of increase in nearly two years, and the prices received index increasing 10.3 points to 19.6.

Although manufacturing indictors improved broadly and firms still expect conditions to get better over the next six months, manufacturers’ optimism plummeted. The index for future business activity decreased 14.5 points to 22.2. Employment and the average employee workweek are forecasted to weaken slightly. New orders are anticipated to increase, but at a slower rate than previously expected. Meanwhile, supply availability is forecasted to drop significantly.