The Empire State Manufacturing Survey indicates that
manufacturing activity in New York State deteriorated
slightly in May. The general business conditions index
fell below zero, to -3.2. The new orders index remained
close to zero, and the shipments index, while positive,
declined markedly. The prices paid index exceeded its
earlier record high by a wide margin, reaching 69.6,
while the prices received index dipped several points.
Employment indexes hovered near zero. Future indexes
were generally low and down from last month's levels,
suggesting that the outlook for the next six months
remains subdued, particularly for employment.
Supplementary questions in the May survey focused on
past and expected changes in the prices that firms pay
for inputs and the prices that they charge their customers.
Respondents estimated that the prices they paid had
risen 8.7 percent, on average, over the past twelve
months, and they expected such prices to rise by an
average of 6.8 percent over the next twelve months.
In contrast, firms' selling prices were reported to
have risen by an average of just 2.9 percent over the
past twelve months, but were expected to accelerate
for a 4.1 percent increase over the next twelve months.
