New York Manufacturing Activity Eases in June -- NY Fed
By Xavier Fontdegloria
Manufacturing activity in New York state continued to grow in
June, albeit at a slower pace than in the previous month amid
easing demand and extensive supply shortages that constrain output
The Empire State Manufacturing Survey's general business
conditions index fell to 17.4 in June from 24.3 in May, the Federal
Reserve Bank of New York said Tuesday. The indicator came in below
the consensus forecast from economists polled by The Wall Street
Journal for 22.9.
Manufacturing activity in the state has grown uninterruptedly
for one year, the survey signals, as the headline index has
remained within expansion territory since July 2020.
"Manufacturing activity grew solidly in New York State,
according to the June survey, though at a slower pace than seen in
the past few months," the New York Fed said.
In June, 39% of respondents said conditions had improved in the
month, while 21% reported that conditions had worsened.
Demand for goods continued to expand, but eased significantly
from prior months' high readings. The new orders index fell about
13 points to 16.3, and the shipments index fell almost 16 points to
14.2, still signaling expansion but at a milder pace than in April.
Unfilled orders were slightly higher, but also softened
significantly compared with the prior month.
Supply strains continued to hinder the industrial sector's
growth capabilities, the data showed, with signs that firms can't
keep up with strong demand.
The delivery times index rose about 6 points to 29.8, hitting
another record high, while the inventories index swung to
contraction, the NY Fed said.
Firms in the state continued to create employment, with the
index for number of employees held broadly steady at 12.3. However,
the average workweek index fell about 4 points to 15.1, indicating
Prices paid and prices received retreated only slightly from
April's record highs. The prices paid index fell about 4 points to
79.8, and the prices received index decreased about 4 points to
33.3. Both indicators suggest significant price increases.
Firms in the area remained optimistic that conditions would
improve over the next six months, the NY Fed said.
The index for future business conditions rose 11 points to 47.7,
indicating increasing optimism. The indexes for future new orders
and shipments rose to similar levels, and the future employment
index rose to a record-high 41.7.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
June 15, 2021 08:44 ET (12:44 GMT)
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