Economy
Manufacturing Activity Surges in NY in February
Written by Sandy Williams
February 17, 2020
A surge in business activity in New York State surprised economists in February. The Empire State Manufacturing Survey’s general business index shot up eight points for a reading of 12.9, well above the forecast consensus of 4.0 and posting its highest level since May 2019.
Business conditions improved across the board except for a softening in employment. New orders jumped 15.5 points to register 22.1 and shipments gained 10.3 points for a reading of 18.9.
Longer delivery times were noted along with stronger inventories. Price pressure eased in February with input price increases slowing and selling prices inching up slightly.
Looking forward to the next six months, manufacturer optimism was restrained. The index for future business conditions was slightly lower and indices for future orders and shipments declined 3.9 and 6.2 points, respectively. The future inventories index tumbled 17.9 points to register -8.3. Employee numbers are expected to grow modestly during the period and capital spending plans declined only slightly.
Economists suggest that improvements in January and February manufacturing indices may indicate a turnaround for the sector, although the impact of the coronavirus has yet to be seen.
Below is a graph showing the history of the Empire State Manufacturing Index. You will need to view the graph on our website to use its interactive features; you can do so by clicking here. If you need assistance logging in to or navigating the website, please contact us at info@SteelMarketUpdate.com.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Architecture firms struggle through April
For the third month in a row, architecture firms reported a reduction in billings through April, according to the latest Architecture Billings Index release.
House committee blocks GOP budget proposal
The budget proposal has big implications for steel and manufacturing.
Manufacturing in New York state contracts again in May
Manufacturing activity in New York state declined for the third consecutive month, according to the May Empire State Manufacturing Survey from the Federal Reserve Bank of New York. Responding firms continue to forecast weaker business conditions in the coming months.
Chicago Business Barometer falls back in April, remains in contraction
The Chicago Business Barometer declined in April, reversing March’s gains, according to Market News International (MNI) and the Institute for Supply Management (ISM).
Fewer manufacturers optimistic about the economy
PMA’s April report shows that only 16% of surveyed manufacturers anticipate an increase in economic activity in the next three months (down from 23% in March)