The Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to improve in July. The general business conditions index held near its June level, at 26.5.
The new orders index climbed for a fourth consecutive month to its highest level in more than a year, while the shipments index remained near its June level. The inventories index tumbled sharply into negative territory. The prices paid index, although elevated, eased modestly, as the prices received index held steady. Employment indexes were modestly positive. Future indexes conveyed significant optimism, with notable improvements in the outlook for employment and capital spending.
I'm a big fan of these regional Federal Reserve reports. They give us a nice regional picture of good, general business information.
This release gives us further confirmation of a strengthening manufacturing sector. However, the inventory questions could indicate a period of slowing activity in the next few months. That situation -- as with most in the economics realm -- will have to play out.
I should add that I am not a big fan of the future outlook question because it's really easy for those being polled to be really optimistic.
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I just posted this in the comments over at The Big Picture:
July 16 (Bloomberg) -- Manufacturing in New York state unexpectedly expanded this month at the fastest rate in a year as orders climbed and employment rose.
Oh, really! This from our Sunday paper, in Geneva, NY:
"GENEVA - International Paper Co. will be closing its Gambee Road plant by year's end, leaving nearly 80 employees without a job.
Officials of the Memphis, Tenn.-based paper and packaging company made the announcement Friday, saying the company has been struggling to stay competitive in recent years as manufacturing companies - the corrugated box plant's biggest customer base - have been declining in the northeast."
There's not much manufacturing in this area, but what little there is has been contracting steadily, especially this year.
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