The Federal Reserve Bank of New York is reporting that its Empire State Manufacturing index rose to 10 this month after dropping to -1.23 in December.
Any reading above zero indicates economic expansion, and the January 2015 survey of New York State manufacturers looks promising. Falling oil prices will eventually drive down the price of raw materials, too, especially if the economies of Europe and Asia remain stagnant.
Overseas demand for American-made products isn’t as strong as some NYS manufacturers would like, but that wasn’t enough to stunt the growth of new orders and shipments. The January 2015 survey revealed growth in both areas, along with widespread optimism about the next six months. Labor market conditions are still mixed, but the future hiring plans of NYS manufacturers reached their highest levels in three years.
For economists and industry analysts, the New York Fed’s report is reassuring. U.S. manufacturing continues to expand, but the numbers from December 2014 weren’t a cause for celebration. The -1.23 reading from the Empire State Manufacturing Index wasn’t the only concern either, as manufacturing nationwide grew at its slowest pace in six months.
Does the January Empire State Manufacturing survey reassure your New York business about opportunities in 2015? Will your company join the ranks of NYS manufacturers who plan to hire more employees to fill a growing number of orders?
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