Empire State Manufacturing Index Shows 4th Month of Growth

New orders picked up from a flat 0.27 in August, rising to 2.4.  The shipping index surged 15 points to 16.4—its highest level in more than a year. Prices paid held steady at 21.5 while the index for prices received climbed five points to 8.6.  Unfilled orders index was relatively unchanged at -6.5 in September.  The inventory index climbed six points to its first positive reading in more than a year while the delivery time index dipped to -4.3. Labor indexes were relatively steady with the employment and work week indices edging down slightly to readings of 7.5 and 1.1, respectively. 

Manufacturers are optimistic about future business activity over the next six months as evidenced by a three point rise in the future business conditions index to 40.6.  Indexes for future new orders and shipments rose by 8 points each. When manufacturers were asked about the probability of specific price rises over the next twelve months, respondents said there was a 44 percent chance of prices staying within 2 percent of current levels and a 43 percent chance of an increase of 2 percent or more. 

Capital expenditures may have reached its peak after recording a 12+ month high in August and slipping nine points in September.  Technology spending still looks promising for the next six months—jumping 7 points to an index reading of 11.8.