The NY Empire State Manufacturing Index increased to -6 in June 2024 from -15.6 in May and beating forecasts of -9. It is the highest reading in four months, although it still pointed to a moderate decline in business activity in the New York State. New orders held steady (-1 vs -16.5) while shipments inched higher (3.3 vs -1.2). Delivery times shortened somewhat (-4.1 vs -9.1), supply availability was little changed (-1 vs -1.1) and inventories were flat (1 vs 2).
Also, labour market conditions remained weak, with employment (-8.7 vs -6.4) and hours worked (-9.9 vs -5.8) continuing to contract. Meanwhile, the pace of input (24.5 vs 28.3) and selling price (7.1 vs 14.1) increases moderated slightly for a second consecutive month. Despite current activity remaining weak, optimism about the six-month outlook picked up to its highest level in more than two years (30.1 vs 14.5). However, the outlook for employment growth remained weak, and capital spending plans still appeared sluggish.
source: Federal Reserve Bank of New York
