Economy

Empire State Index Has Unexpected Gain

June 16, 2014

An increase in manufacturing activity in New York took analysts by surprise in June. The Federal Reserve Bank of New York reported the general business index in the Empire State Manufacturing Survey posted a reading of 19.28, up from 19.01 in May. Economists were expecting the index to decline to 15.0 in June.

The new orders index rose eight points to 18.4, reaching its highest level in four years. Shipments continued to expand in June, slowing by three points to 14.2 for the month. Unfilled orders were at a stable level while delivery times increased two points on the index to 1.1.

Bigger inventories were reported as evidenced by a seven point rise in the inventories index to 9.7 in June. The price indexes were lower in June with prices paid falling three points to 17.2 and prices received down two points to 4.3.

Employment levels continue to expand but at a slower pace in June.

Manufacturers were highly optimistic about future business activity in the six month outlook. New orders are expected to increase along with new shipments. Higher prices are expected in the next six months with the future prices paid index rising five points and the future prices received index up two points.

Manufacturers continue to be cautious about capital expenditures and technology spending.

Below is an interactive graphic of the Empire State Manufacturing Index History and a three month moving average (3MMA), but it can only be seen when you are logged into the website and reading the newsletter online. If you need any assistance logging in or navigating the website, contact us at info@SteelMarketUpdate.com or 800-432-3475.

{amchart id=”140″ Empire State Manufacturing Index and 3MMA}