By Maria Martinez
Manufacturing activity in New York continued to expand in August, but growing at a significantly slower pace than in July, when it reached the highest level ever recorded, according to a survey from the Federal Reserve Bank of New York released Monday.
The Empire State Manufacturing Survey's general business conditions index fell 25 points, to 18.3, in August from 43.0 in July, below the reading of 29.0 forecast among economists polled by The Wall Street Journal.
Any reading above zero suggests that the region's manufacturing sector is growing. The indicator has remained within expansion territory since July 2020.
In August, just over one third of respondents polled in the survey said conditions had improved in the month, while 16% reported that conditions had worsened compared with July.
Demand for goods fell. The new orders index fell 18 points, to 14.8, and the shipments index lost nearly 40 points, to 4.4. Unfilled orders index also rose.
Supply strains hitting the manufacturing sector remained widespread. The delivery times index climbed to 28.3, indicating significantly longer delivery times. The inventories index also edged higher, the report said.
The index for number of employees dipped 8 points, to 12.8, and the average workweek index dropped to 8.9, indicating modest gains in both employment and hours worked.
Prices paid and prices received remained at or near record highs. The prices paid index held steady at 76.1, and the prices received index climbed further to a new record of 46.0.
Firms in the area remained optimistic that conditions would improve over the next six months.
The index for future business conditions climbed 7 points, to 46.5. The indexes for future new orders and shipments rose to similar levels. Substantial increases in employment and prices are expected in the months ahead, the report said.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
08-16-21 0853ET
