Economy

Empire State Index Dips in July

July 16, 2018

Manufacturing activity remained fairly brisk in New York State, despite dropping 2.4 points in July to a general business index reading of 22.6. A reading above zero indicates growth, and July’s reading was better than expected by economists.

The new orders index slipped 3.1 points to 18.2, while shipments fell 8.9 points to 14.6. Delivery times continued to lengthen and inventories decreased marginally.

Prices continued to increase in July although the prices paid index retreated 10 points to 42.7. The prices received index at 22.2 was little changed from 22.1 posted in June.

The index for number of employees dipped two points from its 2018 high in June to register at 17.2, indicating a more moderate pace of hiring. The average workweek index decreased to 5.6 from 12.0.

Said the Federal Reserve Bank of New York regarding future business conditions: “Optimism about the six-month outlook slipped this month. The index for future business conditions fell eight points to 31.1, essentially reversing last month’s gain. Manufacturers continue to expect fairly swift increases in employment in the months ahead, and the indexes for future prices remained elevated.”

The July survey showed manufacturing continuing at a healthy pace in the region, but economists expressed concern that escalating trade tension could dampen future growth.

ESM Chart July

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 in to or navigating the website, please contact Brett at 706-216-2140 or Brett@SteelMarketUpdate.com.