Economy

Manufacturing Remains Solid in New York State

Written by Sandy Williams


New York manufacturing activity continued at a solid pace in May, according to the May 2021 Empire State Manufacturing Survey. The index headline dipped two points to 24.3, but indexes for new orders and shipments gained two and five points, respectively. Thirty-seven percent of survey respondents said conditions had improved over the month with only 13% reporting a dip in activity.

Pricing indexes were at record highs, said the Federal Reserve Bank of New York. Prices paid leapt nine points to 83.5 and the prices received index jumped two points to register 37.1. Longer backlogs and supplier delivery times were reported.

The employment index was steady at 13.6, but the average workweek index gained six points.

Looking forward at the next six months, most indices registered slightly lower, but manufacturers retained their optimism about future business conditions. Prices are expected to remain elevated in the coming months. A significant increase in hiring is predicted.

“Healthy goods demand, rising business investment, reviving global activity and fiscal stimulus will keep U.S. manufacturing advancing at a solid clip though the rest of 2021,” said Oren Klachkin, economist at Oxford Economics.

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