Empire State Manufacturing Survey Unexpectedly Slumps

New York Governor Andrew Cuomo speaks at a news conference on July 6 ,2020 in New York Cit
Timothy A. Clary/AFP/Getty Images

The surprising strength of New York manufacturing in July appears to have faded in August.

The Federal Reserve Bank of New York’s Empire State survey of manufacturers indicated Monday that manufacturing had continued to expand in August but at a slower pace than July.

The survey’s general business conditions index fell fourteen points to 3.7, after unexpectedly jumping to 17.2 in July. Readings above zero indicate expansion.

New orders were little changed for the month, shipments increased a bit, and inventories declined.

Employment inched higher, while the average workweek declined.

There was little sign of either inflation or deflation. Input prices increased at about the same pace as July, while selling prices increased for the first time in several months.

The companies remained optimistic that conditions would improve over the next six months, though the level of optimism declined for a second consecutive month. As usual, it is hard to tell if that decline is a sign that things have already improved or if the outlook has actually turned grimmer.

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