New York Manufacturing Activity Continues to Expand in May -- NY Fed
May 17 2021 - 9:05AM
Dow Jones News
By Xavier Fontdegloria
Manufacturing activity in New York state continued to expand in
May but the growth pace slowed slightly compared with April amid
widespread supply strains, data from the Federal Reserve Bank of
New York showed Monday.
The Empire State Manufacturing Survey's general business
conditions index fell to 24.3 in May from 26.3 in April. The
reading is broadly in line with the consensus forecast from
economists polled by The Wall Street Journal, who expected the
indicator to decrease to 24.8.
Manufacturing activity in the state has grown for 11 consecutive
months, the survey signals, as the headline index has remained
within expansion territory since July 2020. The pace of growth has
accelerated in the last few months amid strong demand for
goods.
The survey is sent to the same pool of about 200 manufacturing
executives in New York state, who respond to a questionnaire and
report the change in several indicators from the previous
month.
"Business activity continued to grow at a solid clip in New York
State," the New York Fed said.
Manufacturing output is recovering across the U.S., but it is
still below the pre-pandemic level. The sector continues to be
constrained by supply-chain disruptions that are likely to persist
in the near term, economists say.
In May, 37% of respondents said conditions had improved in the
month, while 13% reported that conditions had worsened compared
with April.
Demand for goods remained robust and expanded strongly. The new
orders index moved up two points to 28.9, a multi-year high, and
the shipments index increased five points to 29.7. Unfilled orders
also rose, the NY Fed said.
Supply strains continued to constrain output growth, respondents
said. The delivery times index moved down five points, but at 23.6
it held near its record high registered in April. Inventories were
somewhat higher, the report said.
Firms in the state continued to add gains in employment and
hours worked. The index for number of employees held broadly steady
at 13.6, and the average workweek index rose six points to
18.7.
Both prices paid and prices received reached record highs. The
prices paid index rose nine points to 83.5, and the prices received
index climbed two points to 37.1.
Firms in the area remained optimistic that conditions would
improve over the next six months, and expected significant
increases in employment and prices.
The index for future business conditions eased slightly to 36.6.
The indexes for future new orders and shipments also softened
somewhat but remained at strong levels, while respondents expect to
increase employment significantly in the months ahead as the index
remained in expansion territory, the report said.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
May 17, 2021 08:50 ET (12:50 GMT)
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