Manufacturing conditions in the New York region deteriorated in June at a more severe rate than during the previous month, the New York Fed Reserve said on Monday. The Empire State Manufacturing Survey Index fell to minus 9.4 in June from minus 4.55 in May, but remained well above the string of negative readings observed in the October-March period.
From the NY Fed: The general business conditions index fell 5 points, to -9.4. The new orders index remained negative and near last month’s level, while the shipments index fell 6 points to -4.8. The inventories index declined and remained well below zero. Price indexes were negative but modestly higher than in May, and employment indexes stayed below zero.
After rising above zero last month, the shipments index retreated to -4.8. The unfilled orders index, at -10.3, was little changed. The delivery time index rose a few points to -10.3, and the inventories index fell to -25.3.
Future indexes continued to rise, conveying an expectation that conditions should get better over the next six months. The future general business conditions index advanced 4 points, to 47.8, its highest level in nearly two years; 61 percent of respondents expected conditions to improve over the next six months.
Estimated capital spending for 2009 across all responding companies averaged $1.9 million, down 24% from $2.5 million in 2008.
Graph: NY Fed