Economy

Empire State Manufacturing Up Slightly

October 15, 2019

Business activity in New York State grew slightly in October but was generally sluggish. The October 2019 Empire State Manufacturing Survey Index gained two points to register 4.0.

The new orders index was unchanged at 3.5, indicating a slight Improvement. Shipments rose 7 points to 13.0 after falling to a three-year low last month. Unfilled orders continued to decline and delivery times were slightly shorter. Little change was noted in inventories.

Prices increased at a slower pace in October, said the Federal Reserve Bank of New York. Indexes for prices paid and prices received declined six points to 23.1 and three points to 6.3, respectively.

Employment gains were modest for the month.

New York manufacturer optimism was subdued for the six-month outlook. Future business conditions are expected to remain below historical levels, although increasing three points to 17.1. The outlook for future orders and shipments remained nearly unchanged from September. Prices paid are expected to remain the same with prices received increasing slightly. Intentions for new capital expenditures and technology spending both made mild gains.

“The sector has suffered from the uncertainty caused by the trade war, and there’s been a significant loss in momentum in business investment, but the pullback has now played out to the point where we expect to see the data that suggests the sector is drifting sideways,” commented Thomas Simons, senior money market economist at Jeffries, in a note to MarketWatch.