New York Manufacturing Activity Slides in October

Twenty-four percent of survey participants reported that conditions improved over the past month. That was offset by the 29% who reported that conditions had declined.

Price and inventory indices were also flat or down.

“The prices paid index held steady at 25.5, reflecting little change in the pace of input price increases, while the prices received index fell eight points to 11.7, signaling a deceleration of input price increases,” the survey said.

The inventories index reflected a small decline at -2.1.

Despite the negative headline numbers, firms remain optimistic looking forward. The future business index stood at 23.1 in October. That’s down from 26.3 in September but still firmly in positive territory.

“New orders and shipments are expected to increase, though less so than last month, and employment is expected to grow,” the survey said.

Case in point: The index for number of employees moved up to 3.1, and the average workweek increased to 2.2. Both numbers indicate an uptick in employees and hours worked.