Empire State Manufacturing: Factory Activity Expands Slightly

Bottom Line: General business conditions for New York manufacturers expanded for the first time in 8 months. Both new orders and shipments increased and the 6-month outlooks of survey participants improved. Hiring expectations still declined for the 7th consecutive month. On an ISM weighted basis Empire State rose by 4.7% vs. -6.9% last month. Overall this was a modest start to the release of several regional manufacturing surveys over the coming weeks. The Empire State Manufacturing Index ROSE by 17.3 point in March to 0.6%, compared with market expectations for a decline to 10.5%. On an ISM-weighted basis, the index increased, more than the headline, indicating that the details were stronger than the headline figure. New Orders increased by 9.6% compared to -11.6% last month. Shipments also rose sharply by 13.9%. Consequently, Unfilled Orders continued to decline but at a slower pace. Inventories declined moderately. Prices Paid index was unchanged. Prices Received index declined modestly. Employment fell modestly by 2.0% while Average Workweek increased for the first time in 8 months. The 6-Month Outlook improved moderately.