Empire State Manufacturing Survey Flat, Activity in Region Remains Weak

The New York Federal Reserve’s Empire State Manufacturing Survey showed factory activity in the region was flat and subindexes fell to near zero. The headline general business conditions index declined by five points to 0.6, while the new orders index and the shipments index both fell to levels not far from zero, an indication sign that orders and shipments were flat and weak.

Labor market indicators pointed to a small decline in employment levels and hours worked, which will further slow wage increases in the region. In fact, weak manufacturing data across the country and part-time employment have dragged down wage growth.

The prices paid index held steady at 18.7, suggesting that moderate input price increases were continuing, and the prices received index held near zero, suggesting selling prices remained flat. Firms were also less optimistic about future conditions compared to last month. The index for future employment was near zero, suggesting that firms do not expect any change in employment levels in the months ahead