Economy
Empire State Manufacturing Slows in August
Written by Sandy Williams
August 17, 2020
Manufacturing activity in the New York region slowed in August, according to the Federal Reserve Bank of New York. The Empire State Manufacturing Index slid 14 points to 3.7 in August, well below economists’ estimates in the range of 14-17. A reading above zero indicates activity is expanding.
“After increasing significantly in July for the first time since the pandemic began, manufacturing activity in New York State grew only slightly in August,” said the Federal Reserve Bank.
The new orders index plunged 16 points to 1.7 indicating only a moderate increase in orders. The shipments index followed suit with a 12-point plummet to 6.7.
Survey participants indicated that delivery times remained steady, but unfilled orders and inventories declined. Selling prices increased for the first time since March, while input prices remained little changed.
The employment index inched up 2.4 points, but the average workweek index fell 6.8 points, indicating fewer hours worked.
Looking forward, most firms remained optimistic that business conditions would improve during the next six months, but were less confident than they were in June and July. The future indexes for general business conditions and new orders both dropped 4-plus points in August. The future shipments index dropped 8.6 points.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Dodge Momentum drops on moderating data center growth
Slowing growth in data center planning caused the Dodge Momentum Index (DMI) to pull back in September. The decline followed five months of growth after the index hit a two-year low in March.
US construction spending drops again in August
Construction spending in the US declined for a third month in August but showed an increase year over year (y/y). The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending […]
ISM: Manufacturing contracts again in September
US manufacturing activity contracted for the sixth consecutive month in September, according to the latest report from the Institute for Supply Management (ISM). The index has indicated a contracting industrial sector for 22 of the past 23 months.
Chicago Business Barometer remains gloomy in September
The Chicago Business Barometer increased marginally in September but continues to indicate deteriorating business conditions.
Consumer confidence sours in September
The Conference Board reported that consumer confidence in the US dropped to one of the lowest readings of the year in September. With concerns mounting about business conditions and the labor market, the tumble was the biggest monthly decline since August 2021.