Business activity in New York State experienced a modest decline in June, according to the latest Empire State Manufacturing Survey. The headline general business conditions index improved to -6.0, nearly a 10-point improvement from May, and better than the -9.0 index economists had projected.
Inventory Levels and New Orders
The survey highlighted stability in inventory levels, with the index standing at 1.0, reflecting a minor one-point drop from the previous month. New orders saw a significant improvement, jumping 15 points from May, yet the index remained slightly negative at 0.1, indicating ongoing challenges in securing new business.
Positive Movement in Shipments
Shipments showed positive movement, with the index rising by 4.5 points to 3.3. This shift into positive territory suggests some resilience in the delivery of goods, offering a hopeful sign for the sector’s near-term outlook.
Weak Labor Market Conditions
Despite some positive trends, labor market conditions continued to weaken. The employment index dropped further into negative territory, declining to -8.7, while the hours worked index fell to -9.9. These figures indicate that firms are still reducing their workforce and cutting hours, reflecting ongoing uncertainties in the market.
Outlook
The mixed results of the survey present a complex picture of the manufacturing sector in New York State. While the improvement in the general business conditions index and positive shift in shipments are encouraging, the persistent weakness in the labor market remains a concern.
