In August, after more than a year of negative readings, the general business conditions index rose into positive territory and reached its highest level since November 2007—a clear indication that, on balance, business conditions had improved for New York State manufacturers. Thirty percent of respondents said that conditions had improved over the month, while 18 percent said that conditions had deteriorated. The new orders index rose 8 points to 13.4, and the shipments index rose 3 points to 14.1. Both of these indexes were at their highest levels in more than a year. The unfilled orders index rose slightly, to -9.6. The delivery time index, at -10.6, hovered near last month’s level. The inventories index rose 14 points from a very low level in July, but remained well below zero at -22.3.
This is more good news for the manufacturing sector. Industrial production printed a .5 increase on Friday which was the first increase in quite some time. This number from the NY Fed should increase the possibility of that increase continuing.