Economy

New York state manufacturing activity strengthens in September

Written by Brett Linton

September 16, 2024

The state of New York saw a recovery in manufacturing activity in September, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York. This marks the first growth month for the Empire State Manufacturing Index since November 2023.

The General Business Conditions Index rose 16 points from August to 11.5 in September, the highest reading recorded since April 2022. Firms remain mostly optimistic about future business conditions, with 45% of respondents expecting improvements in the next six months.

“New York State manufacturing activity in September grew for the first time in nearly a year, with shipments increasing strongly,” commented New York Fed economic research advisor Richard Deitz.

The majority of the survey’s current indicators improved from August to September. For the first time in months, the new orders index signaled growth. The shipments index surged to a multi-month high, while the inventories index flattened out at zero. The capital spending index eased to its first negative reading since 2020. The full release is available here.

The Empire State Manufacturing Index has only indicated improving business conditions in seven months over the last two years. This time last year, the index registered -19.0, the fourth lowest rate in 2023.

On a three-month moving average basis (3MMA) the index rose to 0.1 through September, now at a ten-month high and the first positive reading of the year (Figure 1). March’s reading of -22.3 was the fourth-lowest 3MMA figure within our 15-year data history, higher only than April, May, and June 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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