Empire State Manufacturing Crushes Forecast in June, Optimism Highest in Over 10 Years

NY Fed Empire State Manufacturing Survey Climbed Nearly 80 Points in Two Months

New York, N.Y. (PPD) — The New York Federal Reserve Empire State Manufacturing Survey rose 48 points in June to -0.2, and optimism soared to the highest level in over a decade. The result in May was the second worst reading in the survey’s history, but off the all-time low in April.

Forecasts ranged from a low of -35.0 to a high of -20.0. The consensus forecast was -30.0. Worth noting, Democratic New York Governor Andrew Cuomo extended the lockdown until the end of June.

The headline general business activity index has now climbed nearly 80 points over the past two months. Thirty-six percent (36%) reported that conditions had improved in June, and an equal percentage reported that conditions had worsened.

The new orders index rose 42 points to a level of around zero, indicating that the quantity of orders was unchanged from last month. The shipments index also climbed 42 points to 3.3, pointing to a slight increase in shipments. Delivery times and inventories both held steady.

The future business conditions index rose 27 points to 56.5, its highest level in more than a decade. That level hasn’t been matched or exceeded since October 2009, when it was 56.8.