New York Manufacturing Index Sees First Rise in a Year

The New York Federal Reserve Bank (Fed) announced on September ‍15th that the September New York Manufacturing Index (Empire State‍ Manufacturing Survey) recorded 11.5, up about 16‌ points‌ from -4.7 the previous month.

This marks ​the first⁢ increase in a year since November last year (9.1) and the highest figure since April 2022 (24.6). The Empire State Manufacturing Index is a figure ⁢calculated ⁤based on a survey of local manufacturers, and a figure above 0 means that business conditions are expanding.

Key Takeaways from the Survey

• New orders ⁤showed a gradual increase trend, with a 17-point increase from the previous month to 9.4.
• The transportation index rose 18 points to⁣ 17.9.
• The inventory index rose 11 points to 0.0.
• The number of workers⁢ index was -5.7,‌ indicating a decrease in the number of workers.
• The prices paid or received by companies were⁣ 23.2​ and 7.4, respectively, showing no significant difference from ⁤the ⁤previous month.

Business Outlook and Capital Spending

The outlook index for ‌business conditions rose​ 8 ‌points from the previous month to 30.6. The‌ New York Fed said 45% of respondents expect‍ business conditions to improve over the next six months.

However, capital spending appears to ‍be decreasing. The capital spending index fell ⁣11 points to -2.1, marking the first time since 2020⁤ that capital ​spending has turned ‌negative.

Expert Insights

“Manufacturing activity in New York has turned positive for the ⁣first time in almost a year, as⁣ transportation conditions ‍have improved markedly,” said ‌Richard Deitz, an economic research director at the New York Fed. “Even though hiring is​ declining modestly and capital investment is declining, business optimism is up.”