Economy

New York manufacturing remains sluggish in June

Written by Brett Linton

June 18, 2024

New York state manufacturers reported dismal business conditions in June. This marks the seventh consecutive month of negative readings, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.

The survey’s General Business Conditions Index improved by 9.6 points from May but remained negative at -6.0.

“Employment continued contracting, and capital spending plans remained flat,” commented New York Fed economic research advisor Richard Deitz. “Despite lackluster conditions, optimism about the six-month outlook rose to its highest level in over two years.”

New orders held steady in June following significant declines the previous month, according to the survey. Shipments showed a slight increase, while delivery times shortened. Inventory levels remained flat for the third consecutive month. Overall, labor market conditions remain weak, as they have for months. Firms still anticipate business conditions will improve through the remainder of the year. The full survey release is available here.

Last year, the index peaked in May at 10.8. It has only indicated improving business conditions in eight months out of the last two-plus years.

On a three-month moving average basis (3MMA), the index rose in June to the highest reading so far this year of -11.97 (Figure 1). Recall that in March, the Index reached its fourth-lowest 3MMA figure within our 15-year data history. Lower readings were only been seen in March, April, and May 2020.

An interactive history of the Empire State Manufacturing Index is available here on our website.

Brett Linton

Brett Linton is a senior analyst for Steel Market Update, where he began his career. Linton has been in the steel industry since 2010. He has held roles as a category manager and strategic insights director at Reibus before returning to SMU in 2024. He is a graduate of The University of North Georgia with a degree in Finance and Accounting. Brett can be reached at brett@steelmarketupdate.com or 724-314-0179.

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