According to data from the Federal Reserve Bank of New York, manufacturing activity in New York state remained unchanged in July, following a slight increase the previous month. The Empire State Manufacturing Survey’s general business conditions index dropped six points to 1.1 from 6.6 in June, which was lower than the expected flat index of 0.
Little Change in Activity and Declining Inventories
The index suggests that manufacturing activity saw little change in July, with delivery times continuing to shorten and inventories steadily declining. While 29% of the surveyed firms reported improved conditions compared to the previous month, 27% stated that conditions worsened.
Mixed Results for New Orders and Shipments
New orders experienced a slight increase, while shipments fell nearly nine points. The new orders index remained relatively unchanged at 3.3 compared to 3.1 in the previous month. Shipments, on the other hand, decreased to 13.4 from 22 in June.
Employment Levels and Prices
Employment levels showed a slight improvement, with the number of employees index entering positive territory for the first time since January. However, there was little change in the number of hours worked. The price paid index slightly declined to 16.7 from 22 in June, while the price received index fell to 3.9 from 9 the month before.
Firms in the area have a positive outlook for the future, although the index for future business conditions decreased slightly from the previous month. New orders and shipments are expected to increase modestly, and delivery times are anticipated to continue shortening. However, capital spending plans are likely to remain soft.