Empire State Manufacturing Survey Reports Bleak Conditions For October
According to the Empire State Manufacturing Survey, conditions for New York manufacturers deteriorated in October as the general business conditions index remained negative at -8.5. This marks the fifth consecutive month that the index declined. New orders remained flat as slightly above zero while inventories declined. The shipments index rose 18 points, but the prices paid and prices received indexes fell. Prices paid were the lowest since November 2010. Credit conditions are tightening even as borrowing costs declined slightly over the past three months.
The number employed rose several points, but the average workweek fell again. Manufacturers are not optimistic about the future as “future general business conditions index dropped six points to 6.7, its lowest level since early 2009, while future indexes for prices paid and prices received declined,” according to the report. Future inventories are expected to continue declining over the next six months.
Source: Federal Reserve Bank of New York