NY Fed reports record-setting growth for business activity in New York

The New York Federal Reserve Bank Thursday morning reported that “business activity grew at a record-setting pace in New York state, according to firms responding to the July 2021 ”˜Empire State Manufacturing Survey.”™”

The NY Fed”™s index that tracks general business conditions in the state has more than doubled in a month based on survey responses received during the period July 1 to July 9.

The index shot up 26 points since the June survey, reaching 43 for the July survey compared with a minus 80 shortly after the Covid-19 pandemic hit early last year and businesses were being forced to close, some permanently. The number 43 represents a record high for that tracking index.

The survey is sent to the same pool of about 200 manufacturing executives in New York state each month, typically the president or CEO. The executives represent a wide range of industries. The NY Fed began conducting the monthly surveys in April 2002.

The NY Fed reported that half of the firms responding to the latest survey expect to increase employment over the next six months. The index that is designed to measure how businesspeople feel about future business conditions fell eight points, but remained high enough at 39.5 to indicate ongoing optimism about future business conditions.

While inventories rose, the delivery time index fell 9.6 points. The NY Fed suggested that  “significantly longer delivery times are an ongoing issue.”

The survey found that spending for technology has remained steady while capital expenditures were up by just under eight points.

The survey also reported that the length of the average workweek increased slightly while the number of employees went up by about 67% from what the NY Fed found in its June survey.

The NY Fed said that half of the businesses responding to the survey reported that conditions had improved since the June report while just 7% reported that conditions had worsened.