July Empire State Manufacturing Index -4.9, New Orders 8.3, Prices Paid 77.9
The July Empire State Manufacturing Index rose slightly from last month’s reading but remains in negative territory at -4.9, the 6th consecutive month of near zero or negative results.
Prices Paid came in at a record 77.9 with better than 3/4 of respondents reporting higher prices. Prices Received also recorded a record high at 32.6 with 41% of respondents reporting they had raised prices.
Employment Indexes were also reported lower with Number of Employees Index coming in at -6.3 and Average Workweek Index at -8.4.
Future Business Conditions cratered to 15.6 (down 17 points), the lowest level since Sept-01.
The New York FED, in a supplemental report, asked respondents to estimate the percentage change in their firm’s sales and employment levels from 2007 to 2008. For calendar year 2007 firms reported a 6% increase in sales and expected 0% in 2008. Firms also reported 0% change in number of employees for both 2007 and for their 2008 estimates.
The NY FED also asked to what extent the increased cost of enery and other commodities caused them to scale back production; 27.5% said somewhat; 8.8% said substantially. 54.8% of respondents said they had to charge higher prices due the higher energy and commodity prices; 29% reported substantial increases.