Manufacturing Firms in Second District Very Optimistic About the Future, Capital Expenditures Index Hits Multi-Month High
New York, N.Y. (PPD) — The Federal Reserve Bank of New York Empire State Manufacturing Survey rebounded strongly in September, nearly tripling the consensus forecast. The headline general business conditions index climbed thirteen points to 17.0, the third straight positive reading.
Forecasts for the headline index ranged from a low of 2.0 to a high of 15.0. The consensus forecast was 6.5.
Forty percent (40%) of respondents reported conditions had improved over the month, while 23% reported that conditions had worsened. The new orders index rose nine points to 7.1 and the shipments index by seven points to 14.1, suggesting a significant increase in shipments.
The index for future business conditions gained six points to 40.3, indicating firms are very optimistic about the future, more-so than last month. With the exception of the post-pandemic shutdown surge to 56.5 in June, it’s the highest level for expectations since 43.1 in March 2018.
The capital expenditures index shot thirteen points higher to 18.7, the highest level in several months. The reading signals that firms plan to increase capital spending.