Economy

New York state manufacturing fell in January
Written by Stephanie Ritenbaugh
January 16, 2025
After holding steady last month, business activity in New York state’s manufacturing sector declined in January, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
The general business conditions index fell 15 points to -12.6. This is a diffusion index, where a positive reading signifies expansion, zero indicates no change, and a negative reading signifies contraction.
“Price increases, while subdued, picked up,” Richard Deitz, economic research advisor at the New York Fed, said in a statement. “Firms grew more optimistic that conditions would improve in the months ahead.”
The new orders index fell 13 points to -8.6, pointing to a modest decline in orders. The shipments index retreated 11 points to -1.7, indicating that shipments were little changed. Unfilled orders continued to fall.
The inventories index remained positive at 5.8, a signal that inventories grew. The delivery times index came in at 3.5, suggesting that delivery times were slightly longer, and the supply availability was zero, a sign that supply availability was unchanged, according to the survey.
In terms of labor, the index number of employees rose eight points, but held near zero at 1.2, suggesting that employment levels were steady. The average workweek index remained negative at -15.1, pointing to a significant decline in hours worked, the survey found.
To smooth out monthly fluctuations, the Index can be recalculated on a three-month moving average basis (3MMA) to better highlight trends. As a 3MMA, the Index fell 0.2 points from December to January to 6.9 (Figure 1). Recall that earlier this year the 3MMA Index had fallen to -22.3 in March, the fourth-lowest figure within our 15-year data history (only greater than the months of April, May, and June 2020).

An interactive history of the Empire State Manufacturing Index is available here on our website.

Stephanie Ritenbaugh
Read more from Stephanie RitenbaughLatest in Economy

AMU: Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.

Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.

ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.

Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.

Chicago Business Barometer catches cold winds of contraction in September
The Chicago Business Barometer's September reading indicates a softening in overall business activity in the Midwest for the third consecutive month, with new orders and backlogs retreating further.