New York Fed Reports Stronger Orders, Shipments

New York, NY, April 15, 2008—The New York Federal Reserve reported stronger orders and shipments for manufacturers in New York state.

The Empire State index surged by almost 23 points in April, to 0.6 from negative 22.2 the previous month. Readings over zero indicate more firms are optimistic than are pessimistic. The index had been negative for two straight months.

The percentage of firms reporting improving conditions rose to 27 percent from 19 percent, while the percentage reporting worsening conditions fell to 26 percent from 41 percent.

The one-month increase in the survey was the largest since May 2003, shortly after the start of the Iraq war.

The shipments index rose by 23 points, to 17.5 from negative 5.2. The new-orders index climbed into positive territory at 0.1 from negative 4.7 in March.

The prices-paid index rose to 57.3 from 50.6, the highest since the post-Katrina gasoline spike in late 2005. At the same time, the prices-received index -- an indication of pricing power -- rose by 5 points to 20.8 percent, the highest in five years.

Despite more comfort in the current economy, the outlook among manufacturers worsened. The future conditions index fell to 19.6 from 25.8. The capital expenditures index fell to a five-year low of 11.5.