Empire State Manufacturing Survey

Business activity continued to grow at a solid clip in New York State, according to firms responding to the November 2018 Empire State Manufacturing Survey. The headline general business conditions index edged up two points to 23.3. New orders and shipments increased moderately, while unfilled orders held steady. Delivery times continued to lengthen somewhat, and inventories moved higher. Labor market indicators pointed to an increase in employment levels and longer workweeks. The prices paid index remained elevated, and the prices received index was little changed. Looking ahead, firms remained fairly optimistic about the six-month outlook.

BUSINESSES REPORT ONGOING GAINS

Manufacturing firms in New York State reported that business activity continued to expand strongly. The general business conditions index rose two points to 23.3. Forty-one percent of respondents reported that conditions had improved over the month, while 18 percent reported that conditions had worsened. The new orders index edged down just slightly to 20.4, and the shipments index was little changed at 28.0—readings that reflected moderate growth. Unfilled orders were unchanged, inventories climbed, and delivery times continued to lengthen modestly.

INPUT PRICE INDEX REMAINS ELEVATED

The index for number of employees moved up five points to 14.1, and the average workweek index climbed nine points to 9.2, indicating increases in both employment levels and hours worked. Input prices continued to rise, with the prices paid index edging up three points to 44.5. The prices received index was little changed at 13.1.

FIRMS REMAIN FAIRLY OPTIMISTIC

Firms expressed a moderate level of optimism about the six-month outlook. The index for future business conditions rose five points to 33.6. The indexes for future delivery times and future inventories both climbed above zero, suggesting that businesses expect longer delivery times and higher inventories. The index for future prices paid reached a multiyear high, and employment levels were expected to increase in the months ahead. The capital expenditures index increased to 24.8, and the technology spending index advanced to 19.7.

New York Fed

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell