Manufacturers in New York Increasingly Pessimistic
Aug 15th 2012 9:18AM
New York State manufacturers have faced deteriorating business and have scaled back expectations for the second half of 2012, according to August's Empire State Manufacturing Survey.
About 22% of manufacturers said business improved during the month, while about 28% said business weakened. The remainder, 50%, said business stayed the same.
The survey, citing index numbers, pointed to slower business as of late. The general business conditions index dropped below zero for the first time since Oct. 2011, falling 13 points to -5.9. This is a signal that manufacturing activity in New York has declined. Meanwhile, the new orders index was at -5.5, which indicates a small decline in orders. This is the second month in a row that score was below zero.
When asked about hiring and capital spending for the second-half of 2012, nearly twice as many firms said they scaled back plans rather than giving upward projections. Many manufacturers cited "increased uncertainty about business prospects" when deciding to scale back on hiring and capital spending.
Filed under: 24/7 Wall St. Wire, Economy