Empire State manufacturing index jumps 18 points to 25.5

• The previous reading was 7.60.

Manufacturing activity in New York State expanded in October. The Empire State Manufacturing Survey’s general business conditions index rose 18 points to 25.5, the highest reading since December 2021.

The stronger headline figure was backed by a sharp increase in new orders and a solid rise in shipments, indicating improving business activity. The new orders index surged 21 points to 23.2, while the shipments index climbed 16 points to 13.1.

Unfilled orders also increased, with the index gaining eight points to 14.0. Delivery times lengthened significantly, and supply availability deteriorated further: the supply availability index fell three points to -15.1, its lowest level since June 2022. Inventories also rose.

Price pressures remained a worry for manufacturers. The prices paid index dropped four points from last month’s four-year high to 59.5. Meanwhile, the prices received index increased three points to 30.6, showing that selling price increases became more widespread.

Employment conditions stayed fairly steady. The employment index held at 10.3, suggesting modest job growth. The average workweek index was 9.1, pointing to an increase in hours worked.

Looking ahead, firms remained optimistic about future business conditions, although confidence moderated. The future business conditions index fell eight points to 21.0.

Manufacturers expect new orders and shipments to increase and employment to continue growing in the coming months. However, supply availability is expected to worsen, and both future price indexes climbed further from already elevated levels, suggesting that expectations for price increases are becoming more widespread. Capital spending plans remained modest.