Thursday’s release of the Empire Manufacturing report for the month of October showed continued weakness in manufacturing activity for the New York region. While economists were expecting the headline reading to come in at -8.0, the actual level was -11.36, representing the third straight month of double-digit negative readings. Empire Manufacturing has also now missed expectations in eight out of the last nine months, including each of the last three. On a slightly more positive note, plans for both Technology and Capital Spending did see modest increases this month.
The table below breaks down this month’s report by each of its individual components. For Current Conditions, this month’s report was pretty weak. The only two components that showed month over month increases were Inventories and Average Workweek. In terms of outlooks, manufacturers are more optimistic as General Business Conditions increased slightly. Components that saw the largest increases in outlook were Average Workweek and Number of Employees, which bodes well for employment in the region. On the downside, Prices Paid saw the largest decline falling from 28.9 down to 27.4.