Economy

Empire State Manufacturing Index Now Negative

May 17, 2017

Manufacturing conditions deteriorated in New York State in May according to the latest Empire State Manufacturing Survey. The general business conditions index slid six points to -1.0. The index is now down 19 points since its February high of 18.7. Economists were expecting the headline index to come in at a positive 7.0 for the month.

New orders and shipments both declined with index readings of -4.4 and 10.6, respectively. The unfilled orders index plummeted 16 points to -3.7; the delivery time index fell nine points to 6.7 indicating a slower pace of increase in delivery times.

The inventories index dropped from its reading of 3.6 in May to -0.7. A reading near the zero mark indicates inventory levels were stable for the month.

Employment indexes remained positive and showed continued improvement. Prices paid feel 12 points to 20.9 to its lowest level since November. The prices received index dropped eight points to 4.5.

J.P. Morgan economist Daniel Silver commented, “We have been expecting some cooling in the manufacturing sector following a solid start to the year, but if the Empire State survey’s orders index proves to be a reliable forward-looking indicator, the slowdown could be more severe than we had been anticipating.”

Firms remained optimistic about business conditions for the next six months. The future business conditions indicator remained near April levels at 39.3. Indexes for future orders and shipments increased somewhat in May.

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.