Economy

New York State Still Deep in Contraction, But Improving
Written by Sandy Williams
May 15, 2020
Manufacturing activity in May continued to deteriorate in New York State, according to the May 2020 Empire State Manufacturing Survey. The general business conditions index posted at -48.5, but did gain 30 points from April’s record lower. Sixty-three percent of the firms reporting said that conditions had worsened in May, while 15 percent saw some improvement.
New orders and shipments continued to decline, but at a slower pace than in April. Both indexes remained well below zero at -42.4 and -39.0, respectively. Delivery times were somewhat shorter in May and inventories were slightly lower.
Input prices increased slightly while selling prices declined for a second month. Employment levels fell further in May, but not as sharply as in April.
“While current conditions remained extremely weak, firms grew more optimistic that conditions would be better six months from now,” said the Federal Reserve Bank of New York. The index for future business conditions rose 22 points to 29.1. Employment levels are expected to modestly improve in the coming months. Firms indicated a reluctance to commit to any new spending at this time.

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

ISM: Manufacturing growth slows in July, hits 10-month low
US manufacturing activity slowed again in July to a 10-month low

CRU: Pushing EU imports back to 15% would be a big task
Several EU member states have published a ‘non-paper’ that puts forward proposals for a post-safeguard trade measure.

SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.

Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.

Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”