Conditions for New York manufacturers improved modestly in June, the Federal Reserve Bank of New York’s Empire State Manufacturing Survey shows.
After dipping into negative territory last month, the general business conditions index for June recovered some ground, rising nine points to 7.8. Roughly 29 percent reported conditions had gotten better over the month, while 22 percent reported conditions had worsened.
While the general business conditions index was positive and higher than last month, many of the survey’s other indicators were negative and weaker.
The new orders index fell six points to -6.7, and the shipments index fell 12 points to -11.8. The unfilled orders index dropped eight points to -14.5, and the delivery time index declined three points to -6.5. The inventories index fell three points to -11.3, extending the decline in inventories to a fourth consecutive month.
The prices paid index was little changed at 21, while the prices received index climbed seven points to 11.3. Labor market conditions were weak: the index for number of employees fell six points to zero and the average workweek index declined 10 points to -11.3.
The future general business conditions index inched down to 25, the future new orders index fell nine points to 19.8 and the future shipments index fell five points to 20.2. The future prices paid index shot up 16 points to 45.2, indicating input price increases were expected to accelerate, while the future prices received index rose three points to 17.7.
The index for expected number of employees retreated to 1.6, and the future average workweek index declined eleven points to -9.7. The capital expenditures index fell steeply, dropping 20 points to 3.2, and the technology spending index moved into negative territory for the first time since 2009, declining 15 points to -3.2.
In a series of supplementary survey questions, manufacturers were asked to look back and assess the short-term and medium-term effects of Superstorm Sandy on their business. As in last November’s survey (conducted immediately after the storm), the majority of upstate firms said that they essentially were unaffected by the storm.
However, firms in New York City, Long Island and the Lower Hudson Valley reported it took an average of more than two weeks after the storm for business to get back to normal, and more than one-third of these firms said the storm adversely affected their overall business revenue during the seven months since Sandy.
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