Business Conditions Pick Up for NY Manufacturers in July

by Rick Seltzer

New York’s manufacturing sector bounced back from an early summer slowdown in July, according to a survey released by the Federal Reserve Bank of New York.

The general business conditions index in the New York Fed’s July Empire State Manufacturing Survey rose 5.1 points to 7.4. The increase is a reversal in course from June, when the index fell 14.8 points.

In July, 32.1% of survey respondents indicated business conditions improved, compared with 24.8% who said conditions worsened. The final 43.1% reported conditions that stayed the same.

Not all of the survey’s current indicators climbed, however. Its new orders index, which measures the number of new orders manufacturers received, turned negative for the first time since November 2011. It fell 4.9 points to -2.7.

Manufacturers also pulled back on their expectations for six months into the future, as the survey’s future general business conditions index slipped 2.9 points to 20.2. It has been falling steadily since January.

Still, the future general business conditions index is firmly in positive territory. In July, 37.5% of survey respondents predicted better conditions in six months, while just 17.3% anticipated worse conditions. The remaining respondents expect conditions to remain the same.

The New York Fed polls a set pool of about 200 New York manufacturing executives for its monthly survey. About 100 executives typically respond, and the Fed seasonally adjusts data.