Economy
Manufacturing activity in New York state still down
Written by David Schollaert
August 15, 2024
New York state’s manufacturing activity improved in August but remained in contraction territory, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
The Survey’s General Business Conditions Index rose by 1.9 points this month to a reading of -4.7. This marks the ninth consecutive month of negative readings.
Last year, the index peaked at 10.8 in June and has only indicated improving business conditions in nine of the last 32 months.
Manufacturing activity slipped in August, driven by modest declines in new orders and weak labor conditions due to “a small decline in employment and a sharp drop in hours worked,” commented New York Fed economic research advisor Richard Deitz. “Firms continued to be somewhat optimistic that conditions would improve in the months ahead.”
The new orders index fell 7.3 points this month after staying flat for the previous two months, while the inventories index indicated lower stocks for a second straight month. Firms remain “fairly” optimistic about future business conditions, as 45% of respondents expect improvement over the next six months. The full release is available here.
On a three-month moving average basis (3MMA), the index rose in August to its highest reading of the year, -5.77 (see Figure 1). Recall that in March, the Index reached -22.33, the fourth-lowest 3MMA figure within our 15-year data history, which was only higher than the months of April, May, and June 2020.
An interactive history of the Empire State Manufacturing Index is available here on our website.
David Schollaert
Read more from David SchollaertLatest in Economy
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)
Architecture billings continue to slide in March
Architecture firms said billings continued to decline in March, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.