General business conditions in New York fell slightly in July, as did other key manufacturing indicators, the Federal Reserve Bank of New York’s Empire State Manufacturing Survey shows.
Manufacturing firms reported modest growth in business activity, but general business conditions fell 10 points to 9.8. Still, the index remains at a higher level than one year ago.
The new orders index moved down to 13.3, while the shipments index fell to 10.5, suggesting orders and shipments continued to grow, though at a somewhat slower pace than in June. Delivery times continued to lengthen and inventory levels were fairly steady, the New York Fed reported.
Labor market indicators pointed to a small increase in manufacturing jobs in July and no change in hours worked.
Looking ahead, manufacturers statewide continue to be optimistic about business conditions, although firms were somewhat less optimistic about future conditions than in June. The index for future business conditions fell to 34.9 in July from 41.7 in June.
The index for future new orders fell nine points but manufacturers expect to increase employment modestly. Inventories are expected to increase slightly, while prices paid are expected to fall somewhat.
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