Posted on 08/15/2003 6:07:41 AM PDT by Starwind
NY State factory index retreats in August
Friday August 15, 8:31 am ET
NEW YORK, Aug 14 (Reuters) - Overall business conditions for New York State manufacturers stayed positive for a fourth straight month in August, though there was some pullback from July, the Federal Reserve said on Friday.
The Federal Reserve Bank of New York said its Empire State Manufacturing Survey index of business conditions fell to 9.98 in August from a revised 20.83 in July.
The survey provides an early snapshot of factory activity during the month and has at times served as a leading indicator for other regional manufacturing measures. But it has a short history and the correlation has not always held up.
"The shipments index reached 22.6, its highest level in more than a year," the Fed said. "Employment indexes indicated very little change in activity from last month. Expectations remained favorable."
Of the Empire State survey's components, new orders remained firm, at 12.52 in August, though that was down from 15.07 in July. Shipments rose solidly to 22.55 from 20.17 in July, suggesting production may be ramped up in coming months.
Price pressures were modest with the prices paid index dipping to 4.08 from 6.5.
Employment measures improved somewhat but remained soft overall. The number of employees index edged up to 0.0 from -9.47, while the average workweek moved to -2.48 from -6.28.
The six-month business outlook indicated a high degree of optimism, the Fed said. The six-month business outlook rose to 59.47 from 51.75 in July and shipments climbed to its highest level in a year. Future new orders improved to 58.98 from 51.71 and even employment was expected to increase, though
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