NY Fed's June Manufacturing Index -9.41 Vs -4.55 In May

NY Fed's June Manufacturing Index -9.41 Vs -4.55 In May
    By Deborah Lynn Blumberg    Of DOW JONES NEWSWIRES  

NEW YORK (Dow Jones)--Conditions for New York manufacturers continued to deteriorate in June, and at a modestly faster pace than in May, according to the Federal Reserve Bank of New York's Empire Manufacturing Survey released Monday.

The Empire State's business conditions index fell five points to -9.41 from -4.55 in May and the record low of -38.23 in March.

The index for new orders remained negative and near last month's level, at -8.15 from last month's -9.01. The index for shipments fell by roughly six points to -4.84 from 1.29 in May.

The index for employment improved slightly, to -21.84 from -23.86. The index of prices received moved to -12.64 from -27.27, the Fed said. Unfilled orders stood at 4.68 from 10.38 in May. The inventories index improved to -8.05 from -10.23 in May.

Future indexes were generally positive and continued to rise in June, conveying an expectation that conditions should improve over the next six months. Both the capital spending and technology spending indexes rose into positive territory for the first time since October of last year.

Manufacturers were also asked about their capital spending plans for 2009 relative to their actual spending for 2008. Similar questions had been asked in June 2008 and June 2007.

In the current survey, 56% of respondents reported reductions in overall capital spending in 2009, while just 20% reported increases.

These results contrast fairly markedly with those of the June 2008 survey, which showed nearly as many respondents reporting increases, 32%, as decreases, 36%. The 2009 results differ even more sharply from those of the 2007 survey, which showed far more firms reporting increases than reductions.

-By Deborah Lynn Blumberg, Dow Jones Newswires; 212-416-2206; deborah.blumberg@dowjones.com

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(END) Dow Jones Newswires

June 15, 2009 08:30 ET (12:30 GMT)

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