Empire State Business Indices Continue to Show Optimism by Manufacturers

The prices paid index was relatively unchanged at 25.8 suggesting that input costs were keeping pace. Selling prices were flat for March as indicated by a 6 point drop in the selling prices received index. Employment levels fell in March but were still above the neutral point.

Manufacturers’ confidence continued to surge in New York as indicated by a three point rise to 36.4 in the future general business index—the highest level in nearly a year. Future new orders and shipment indexes rose and manufacturers indicated they expect to see increases in input and selling prices. Employment levels are expected to continue to rise. Capital expenditures remained steady at 15.1 while technology spending rose by seven points to 18.3.

In a supplemental survey, manufacturers reported they are holding lower cash balances and expect those holdings to decline in the coming year. Debt levels are expected to rise in 2013.