NEW YORK, July 15 - Business conditions for New York State manufacturers remained bright in July, a report said on Tuesday, although conditions eased a little from June.
The Federal Reserve Bank of New York said its Empire State Manufacturing Survey eased to 22.6 in July from a revised 27.6 in June. The June level was a record high for the two-year-old index. The survey provides an early snapshot of factory activity during the month and has at times served as a leading indicator for other regional manufacturing measures. But it has a short history and the correlation has not always held up. "The general business conditions index remained well above zero in July, falling only slightly from last month and continuing a three-month positive trend," the New York Fed said. Of the Empire State survey's components, new orders remained at a high level, at 16.9 in July compared with 17.0 in June. Shipments rose solidly to 21.2 from 16.1 in June, suggesting production may be ramped up in coming months.
Price pressures resumed in July, after dipping below zero in June. The prices paid index rose to 6.5 from -2.0. In a gloomy sign, employment measures weakened and pointed to further contraction in manufacturing jobs in July, with the number of employees index falling to -8.6 from zero. The six-month business outlook remained high, and near to the levels recorded before the war in Iraq. The six-month business outlook was at 52.5, down from 58.9 in June, with future new orders and shipments above 50. Six months out, employment was also expected to increase.//