Economy

Manufacturing Remains Solid in New York State
Written by Sandy Williams
May 17, 2021
New York manufacturing activity continued at a solid pace in May, according to the May 2021 Empire State Manufacturing Survey. The index headline dipped two points to 24.3, but indexes for new orders and shipments gained two and five points, respectively. Thirty-seven percent of survey respondents said conditions had improved over the month with only 13% reporting a dip in activity.
Pricing indexes were at record highs, said the Federal Reserve Bank of New York. Prices paid leapt nine points to 83.5 and the prices received index jumped two points to register 37.1. Longer backlogs and supplier delivery times were reported.
The employment index was steady at 13.6, but the average workweek index gained six points.
Looking forward at the next six months, most indices registered slightly lower, but manufacturers retained their optimism about future business conditions. Prices are expected to remain elevated in the coming months. A significant increase in hiring is predicted.
“Healthy goods demand, rising business investment, reviving global activity and fiscal stimulus will keep U.S. manufacturing advancing at a solid clip though the rest of 2021,” said Oren Klachkin, economist at Oxford Economics.

Sandy Williams
Read more from Sandy WilliamsLatest in Economy

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.”

Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.

AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.