Economy
Empire State Manufacturing Survey Plunges in January
Written by Sandy Williams
January 15, 2016
New York manufacturers experienced their worse business conditions since the 2007-2009 recession, according to the January Empire State Manufacturing Survey. All indexes for current conditions were in negative numbers except those for pricing.
The survey for general business conditions index fell 13 points to -19.4. Indexes for new orders and shipments plummeted by double digits to -23.5 and -14.4, respectively.
Bloomberg called the report “grim” and said that January factory activity “appears to be getting hit by global concerns.”
The unfilled orders index rose 5 points to -11.0 and the delivery times shortened as indicated by a drop of 5 points to -13.0 on the delivery time index. Inventory reduction continued during the last survey period, but at a slower pace than December.
Pricing indexes were positive in the January survey. Prices paid rose 12 points to 16.0. Selling prices reversed its four month decline with an increase of 8 points to register at 4.0.
The employment indexes remained negative but improved slightly.
Looking ahead to the next six months, manufacturer optimism about future business conditions fell sharply. The index for future business plunged 26 point to 9.5—its lowest level since 2009. Future new orders and future shipment indexes were halved in the January survey.
“Federal Reserve officials have said they expect domestic demand to keep the economy growing despite weakness in manufacturing,” wrote Gregg Robin, Morningstar Marketwatch. “Officials have generally remained on board with their forecast of four quarter-point rate hikes this year. But the new downturn in the factory sector may give the U.S. central bankers pause. The market is already pared back its expectations of rate hikes this year, which were already below the U.S. central bank’s projections.”
The Empire State Manufacturing Index is conducted monthly by the Federal Reserve Bank of New York.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Architecture billings flat in October after months of contraction
Architecture firms reported stable billings in October, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek. This follows 20 months of contracting business conditions.
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.