Economy

Empire State Manufacturing Index Rebounds in July

Written by Sandy Williams


Manufacturing conditions improved in New York State in July, says the Federal Reserve Bank of New York. The latest Empire State Manufacturing Survey general business index rebounded from contraction to gain 13 points and register 4.3.

Shipments increased during the month while new orders were essentially flat. Indices for unfilled orders and inventories moved lower and delivery times lengthened.

The employment index, which entered contraction last month, fell six more points to -9.6, indicating a decline in employment levels. The average work week index, at 3.8, suggested longer hours in July.

Prices for inputs grew at a lower rate during the month, but prices received increased only modestly .

Manufacturers were somewhat more optimistic in July about business activity during the next six months. The future business conditions index rose five points to 30.8. The future new orders index also rose in July, but the shipment index indicated almost no change. Capital spending is expected to rise along with an increase in technology spending. Employment levels are expected to remain steady.

“A welcome partial rebound, but a real recovery is unlikely before the fall,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

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