U.S. Jan. Empire State Manufacturing Index (Text)

Following is the text of the Empire State Manufacturing Index.

The January 2014 Empire State Manufacturing Survey indicates that business activity expanded for New York manufacturers, and did so at a faster pace than in recent months. The general business conditions index rose ten points to 12.5, its highest level in more than a year. The new orders index climbed thirteen points to 11.0, a two-year high, and the shipments index rose to 15.5. The unfilled orders index remained negative at -8.5. The indexes for both prices paid and prices received were significantly higher, pointing to an acceleration in the pace of input and selling price increases. Employment indexes indicated an improvement in labor market conditions. Indexes for the six-month outlook continued to convey a fair degree of optimism about future conditions.

Business Activity Picks Up

Business activity expanded modestly for New York manufacturers, according to the January 2014 survey. The general business conditions index rose ten points to 12.5, reaching its highest level since May of 2012. This month, 35 percent of respondents reported that conditions had improved over the month, while 22 percent reported that conditions had worsened. The new orders index climbed out of negative territory, rising thirteen points to 11.0, a two-year high. The shipments index rose eleven points to 15.5, and the unfilled orders index rose sixteen points to - 8.5. The delivery time index was little changed at -8.5. The inventories index rose twenty-four points to 2.4, more than reversing last month’s sharp decline.

Price Increases Accelerate

The indexes for both prices paid and prices received were significantly higher. The prices paid index rose twenty-one points to 36.6, its highest level in more than a year, pointing to a substantial pickup in the pace of input price increases. The prices received index rose ten points to 13.4, indicating an acceleration in the pace of selling price increases as well. Employment indexes suggested an improvement in labor market conditions. The index for number of employees rose twelve points to 12.2, indicating a modest increase in employment levels, and the average workweek index rose to 1.2 -- a sign that hours worked held steady.

Six-Month Outlook Remains Optimistic

Indexes for the six-month outlook remained fairly optimistic. The index for future general business conditions was little changed at 37.5. The index for future new orders climbed nine points to 39.1, and the index for future shipments inched down to 30.6. The index for future prices paid fell three points to 45.1, and the index for future prices received fell to 23.2. The index for expected number of employees rose to 20.7, and the future average workweek index climbed to 9.8. The capital expenditures index increased four points to 12.2, and the technology spending index rose to the same level, 12.2.

SOURCE: Federal Reserve Bank of New York

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