The Empire State Manufacturing Index, a key indicator of manufacturing activity in New York, slipped to -6.6 in July, down from -6 in June, marking the eighth consecutive month of negative readings. Economists had predicted the index would remain at -6. This decline signals ongoing challenges in the sector.
Employment & Prices: The employment index further declined to -7.9, indicating another month of contraction in manufacturing jobs. Input costs continue to rise, with the prices paid index inching up to 26.5. Meanwhile, the prices received index stood at 6.1, suggesting that selling price increases were still modest.
Optimism: Despite the current sluggishness, firms maintain a cautious optimism about the future. The index for future business conditions slightly decreased to 25.8 from last month’s sharp rise, with 41% of respondents expecting improvement over the next six months.
What They’re Saying: Richard Deitz, Economic Research Advisor at the New York Fed, commented on the mixed signals: “While manufacturing showed sluggishness in July, steady orders and increased shipments are positive signs for the sector.”
