The latest Empire State Manufacturing Survey, released for July 2023, reveals a mixed picture of business activity in New York.
While overall conditions remain stable, there are signs of caution and bleak optimism among businesses.
The general business conditions index, a key indicator of economic activity, fell six points to 1.1.
Although still indicative of expansion, this decline represents a slight decline in business sentiment compared to previous months.
On the positive side, new orders saw a modest increase, indicating continued demand. Shipments also grew, reflecting increased activity.
In addition, delivery times are becoming shorter, which can be a positive development for businesses looking to streamline operations.
However, stocks continued to decline, indicating potential supply chain challenges.
Total employment in the state saw a small increase, giving some hope for job growth. However, the average number of working hours remained unchanged, indicating stable but not strong labor market conditions.
Price inflation declined during the period, with both the index of prices paid and prices received showing declines. This may provide relief to businesses faced with rising input costs.
However, plans to increase capital expenditure remain weak, with the relevant index down five points. This indicates careful investment planning among the examined companies.
Regarding future expectations, businesses expressed hope for better conditions, but overall optimism remained bleak.
The index of future business conditions fell to 14.3, indicating gloomy sentiment about future prospects.
Moderate increases are expected in new orders, shipments, and employment. However, capital expenditure planning continues to show weakness, reflecting continued vigilance among businesses.
The Empire State Manufacturing Survey serves as an important barometer of economic activity in New York State and can provide insight into broader trends impacting the United States economy.
These results highlight the delicate balance between resilience and caution as businesses navigate a changing economic landscape.
Today's Data Economy Focus
Tuesday, July 18
U.S. Retail Sales (June)
Industrial Production (June)
Business Inventories (May)
Retail Inventories (May)
NAHB Housing Market Index (July)
