A manufacturing survey released this morning by the Federal Reserve Bank of New York finds that business activity edged slightly lower in New York recently. The NY Fed’s Empire State Manufacturing Survey for February found that companies responding reported less of a business contraction than they had in January but still lacked optimism for the future. Compared with statistics gathered for its January report, the statistics in the February report were considered by some analysts to indicate a very strong increase in business activity. The index used to track business activity increased by more than 41 points from the survey released in January to the one released today. An increase of about 20 points had been forecast by some observers.
“Firms’ optimism remained subdued,” according to Richard Deitz, economic research advisor at the NY Fed.
The survey found that new orders declined modestly, while shipments edged higher. Unfilled orders continued to shrink, and delivery times continued to shorten. Inventories declined. Employment levels were little changed, while the average workweek fell. The pace of input price increases picked up for a second straight month, and the pace of selling price increases also steepened. The six-month outlook improved although, as Deitz said, optimism remained subdued.
“On the heels of a significant contraction last month, manufacturing activity shrank further in New York state, ” the report said. The survey results suggested that employment levels remained essentially unchanged. The results also showed that capital spending plans remained somewhat soft.
