Economy

Empire State Manufacturing Slows in March

March 16, 2015

New York manufacturing activity slowed in March as the pace of new orders and shipments weakened. The Empire State Manufacturing Survey, conducted by the Federal Reserve Bank of New York, indicated general business conditions fell slightly to 6.9 from 7.78 in February and 10.0 in January. Analysts had expected the index to register around 8.0 for March.

New orders fell four points to -2.4 while the shipments index declined six points to 7.9. Although the drop in shipments indicates weaker production, employment levels surged to 18.56 from 10.11.

Inventories tightened in March as indicated by an index slip to -5.15 from -2.25. Delivery times were slightly shorter.

Pricing pressure was subdued for the month with manufacturers paying less for raw materials. The prices paid index fell two and one quarter points to 12.37 and prices received gained nearly 5 points at 8.25

The index for future business conditions rose to 30.72 in March after falling in February. However, the trend lines for new orders and shipments continue to inch downwards. The index for new orders dropped to 26.31 from 28.61 in February and 41.44 in January.

The future shipments index, an indicator for new production, began a slow decline after a sharp upward jump in August 2014. The future shipments index has shown a decline since its January reading of 40.57, falling to 30.34 in February and 28.71 in March. Inventories are expected to remain low for the next six months.

New York manufacturers are anticipating higher prices in the next six months after. The future prices paid index rose five points to 31.9 and the future prices received index jumped 6.75 points to 12.37.

Below is an interactive graphic of the Empire State Manufacturing Index History and a three month moving average (3MMA). The 3MMA will smooth out the monthly data so we can better see the actual trend. However, the interactive grahic 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}