General business conditions continued to deteriorate in May, although not as badly as in April, when the 19-year-old Empire State Manufacturing Index hit an all-time low, the Federal Reserve Bank of New York reported Friday.
The May index stood at -48.5, up 30 points from April, but still the second worst reading ever. The index is calculated from a survey of top manufacturing executives across New York state. The May survey was conducted between May 4 and 10, and offers a current and forward-looking report on the health of New York's manufacturing sector.
The index is calculated by calculating the percentage of respondents for whom conditions are deteriorating from the percentage for whom they are improving, and seasonally adjusting the result. A negative result, anything below zero, indicates conditions are worsening, while a positive result indicates they are improving.
While the report doesn't identify the Covid-19 pandemic, the nearly complete shutdown of nonessential business activity that began in mid-March is likely reflected in the weak results of both the April and May surveys.
New orders and shipments declined sharply in May, although not as sharply as they had in April. Employment plunged in April, and continued falling in May. The average work week continued to shorten.
But respondents expect improvements in the next six months. The index for future business conditions gained 22 points, rising to 29.1, Most factors were in positive territory, with the exception of delivery times, capital expenditures and spending on technology, suggesting firms would continue cost-cutting in the wake of the pandemic.
The Federal Reserve Bank said it would release a Supplemental Survey Report on the effects of the coronavirus pandemic on Monday.
"continued" - Google News
May 16, 2020 at 09:37AM
https://ift.tt/3dOtYRW
State's manufacturers continued to struggle in early May - Times Union
"continued" - Google News
https://ift.tt/2WiTaZN
https://ift.tt/2YquBwx
Bagikan Berita Ini
0 Response to "State's manufacturers continued to struggle in early May - Times Union"
Post a Comment