The January Empire State Manufacturing Survey indicates that manufacturing activity expanded in the New York FED region since the last survey. The general business conditions index was up 5 points to 13.5, with 35% of respondents reporting improved conditions. The new orders index rose eight points to 13.7 while the shipments index gained 2 points to 21.7. Unfilled orders remained negative despite a 10 point increase while the delivery time index fell into negative territory. Inventories were positive for the first time in a while, up 10 points to an index of 6.6, indicating that inventory levels increased.

The prices paid index gained 2 points to 26.4, signaling a moderate upward pace. Prices received showed a large 20-point gain, indicating a large increase in selling prices. Employment indexes were positive and higher, indicating increased employment levels and a longer average workweek as the average workweek index rose 9 points to 6.6.

The future looks bright as the six-month outlook for future general business conditions rose 9 points to 54.9, its highest level since January 2011. The future new orders and shipments indexes also saw optimistic readings. Future price indexes were lower for January but still suggested that input price increases and selling price increases are expected in the future. Employment level indexes for the future were positive, while the future index for average workweek fell 5 points. Both the future capital expenditures index and the future technology spending index rose in January.

Source: Federal Reserve Bank of New York