News & Insights

Manufacturing activity in New York state was little changed in March, with the headline business conditions index falling 7.3 points to -0.2, right under the threshold that indicates contraction. The new orders index edged up 0.6 points to 6.4, while the shipments index moved down 5.9 points to -6.9. Unfilled orders increased 1.7 points to 10.8, while inventories ticked down 0.2 points to 6.9, indicating business inventories are growing but at a slightly slower pace. Delivery times lengthened, and supply availability worsened, declining 2.9 points to -3.9.

Employment increased in March, with the index for the number of employees rising 1.8 points to 5.8. At the same time, the average employee workweek index ticked down to 1.9 from 2.1, signaling a slower pace of increase in hours worked in March. The prices paid index fell 12.5 points to 36.6, while the prices received index edged down 0.8 points to 21.4, reflecting a slower pace of increase in both prices paid and prices received.

In March, firms’ optimism regarding the future declined but remained positive, with the future business activity index decreasing 3.7 points to 31.0. In the next six months, new orders are expected to rise but at a slower pace compared to the prior month at 29.1. The future employment index moved down 3.9 points to 22.2, suggesting an anticipated slower pace of employment growth over the next six months. Meanwhile, input and selling price expectations are forecasted to increase at a slower pace, dropping from 57.6 to 43.1 and from 40.3 to 32.4, respectively. Furthermore, capital spending plans strengthened from February, up from 18.2 to 21.6.