New York Manufacturing Firms Report Solid, Sustainable Growth
The Empire State Manufacturing Survey rebounded in February to beat the consensus forecast, as both the general and expectations gauges indicate solid growth.
The headline general business conditions index doubled from the month prior, rising 5 points to 8.8. The new orders index rose 4 points to 7.5.
Thirty-two percent (32%) of respondents said conditions had improved over the month of February, while 23% reported that they had worsened.
The shipments index came in at 10.4, indicating a solid and sustainable pace of growth, even though the index fell 8 points to its lowest level in well over a year.
Overheating has been a real concern with the Empire State Manufacturing Survey, as well as the Philadelphia Fed’s Manufacturing Index.
Unfilled orders held steady, inventories were little changed, and delivery times were slightly longer.
The six-month outlook was far more optimistic in February than in the prior month. The index for future business conditions soared 15 points to 32.3.
The indexes for future new orders and shipments climbed to similar levels and firms expect employment and hours worked to increase at a solid pace.
The capital expenditures index jumped 11 points to 29.3, and the technology spending index ticked higher to 22.1.
