State Sees Steady Labor Indices, But Manufacturing, Shipping Activity Down
According to the latest Federal Reserve Bank of New York data, New York state saw a decline in business this month. The state’s business conditions index was down to -14.9 for August from a July reading of 3.86. According to a Wall Street Journal survey, economists had anticipated a monthly index reading of 4.5. Much of August’s surprising contraction was due to a continued contraction in demand for new orders. The new orders index reading fell from July’s -3.50 to -15.7. Shipping and inventories also fell for the month, with the shipments index down to -13.8 from 7.88 in July and the inventory index down from -8.51 to -17.3. However, there was a positive gain for the unfilled orders index, which rose from -7.45 in July to -4.5 this month. Additionally, the index for employees saw little change, and was still positive, at 1.82, down from 3.19 in July. Though the average workweek index fell to -1.82 from 4.26, it was still a more positive data point than others for the month, pointing to an overall steady labor market. In another bright spot, the state’s manufacturers expressed optimism about the economic outlook for the next six months. The future business activity index rose 7 points to 33.6 while the future shipments index rose 8 points to 33.
What This Means For Small Businesses
The Federal Reserve of New York’s latest economic data shows that New York state is seeing mixed results in its attempts to rebound from the contraction in the first quarter of 2015. Although there are some indications that the labor market is stabilizing, manufacturing and shipping results were unexpectedly negative for the month, suggesting a possible slowdown in some sectors. However, businesses are still optimistic about the economic outlook through the rest of the year, meaning overall the state’s small business owners should see the state’s economy headed in a positive direction.
Additional Reading
NFIB previously noted Fed index data for Philadelphia, which was similarly mixed.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
