Economy

Empire State Index in Contraction for 2nd Month

September 15, 2016

The Empire State Manufacturing Index remained below the zero “no growth” level at -2.0 in September for the second consecutive month. Analysts point to weak export orders and sluggish business investment by the manufacturing sector.

New orders dropped eight points to -7.5 and shipments plunged 18 points to -9.4. Indexes for unfilled orders and delivery times remained in contraction. Inventories declined at a faster pace this month, dropping eight points to -12.5. The price indexes were relatively unchanged from August, indicating slight increases for input and selling prices.

Employment levels were also down in September. The employment index fell 13 points to -14.3 and the average work week index lost 14 points, registering -11.6.

Despite current weak conditions, manufacturers were more optimistic about future conditions than they were last month. The future business index jumped 11 points to 34.5 with new orders advancing as well. The future shipment index declined slightly but was still positive. Manufacturers said they expect to hire more workers to hire more workers in the coming months. Input prices and selling prices are expected to increase significantly over the next six months. Indexes for future capital expenditure and technology spending both climbed to 10.7.

Below is a graph showing the history of the Empire State Manufacturing Index. You will need to view the graph on our website to use its interactive features, you can do so by clicking here. If you need assistance logging into or navigating the website, please contact our office at 800-432-3475 or info@SteelMarketUpdate.com.