Manufacturing growth fell sharply in July, according to The Empire State Manufacturing Survey released this morning by the New York Federal Reserve. It was the largest drop for the index since October of 2005.The general business conditions index was positive, but fell from 29.0 to 15.6. The inventories index, however, was negative for the second consecutive month. Employment indexes were slightly more positive and futures indexes rose from the previous month, which indicates a positive outlook for the next six months. Manufactures were asked to estimate the business outlook from the previous time period in 2005. The responses indicate a medial sales increase of five percent for the first half of the year and a seven percent for the full year. Manufactures will look to increase employment approximately two percent for the full year. Results from future indexes suggest that manufactures expect their businesses activity to continue to expand during the next six months. The future general business conditions index rose for the second consecutive month to 44.8.
The full report can be found at: http://www.newyorkfed.org/research/regional_economy/empiresurvey_overview.html.