Economy

Modest Expansion for NY Manufacturers in January

January 15, 2020

Manufacturing in New York State expanded modestly in January. The Empire State Manufacturing Survey’s general business conditions index gained 1.5 points to post 4.8 for the month.

Shipments posted 8.6, down one point from December, but new orders gained 4.9 points to post 8.6.

Unfilled orders continued to decline, delivery times were shorter, and inventories held steady in January.

Prices increased noticeably, said the Federal Reserve Bank of New York. “After falling to a multi-year low last month, the prices paid index rose 16 points to 31.5, and the prices received index climbed 10 points to 14.4.”

Firms remained uncertain in the six-month outlook. The index for future business conditions dipped three points to 23.6, but future shipments climbed five points to 32.7. Modest increases in employment and hours worked are expected.

Commented MarketWatch: “The headline index has been in a narrow range since the middle of 2019. Overall, the factory sector continued to struggle, hurt by international trade worries, a pull-back in spending and Boeing Co.’s issues over its grounded 737 Max airplane.”

Data is compiled from a survey of about 200 manufacturers in New York state. A level above 0.0 indicates improving conditions, below indicates worsening conditions.