Empire State Manufacturing Survey Stages Mixed Recovery in July

The New York Federal Reserve Empire State Manufacturing Survey staged a mixed recovery in July, rebounding stronger than the forecast from -8.6 in June to 4.3. New orders climbed from -12.0 to -1.5.

Thirty percent (30%) of respondents reported business conditions for manufacturing firms improved in July, while 26% reported that conditions worsened.

The employment index fell further by 6 points to -9.6, pointing to a decline in employment levels. The average workweek index came in at 3.8, indicating somewhat longer workweeks.

But the index for future business conditions rose another five points to 30.8, indicating a stronger reading next month. The index for future new orders also moved higher, suggesting an expected climb out of contraction next month.

In another positive, the capital expenditures index — which declined significantly last month — rose 9 points to 19.0, and the technology spending index ticked up to 14.6.