Reason for optimism

Manufacturing firms see conditions improving six months from now.

The Empire State Manufacturing Survey of firms statewide, released Tuesday, found the improvement in general business conditions slowing during December, the New York Federal Reserve Bank reported.

The index declined to 4.9 from 6.3 in November, according to the report.

New orders were nearly flat, with a decline of 0.3 points, to 3.4, while shipments showed an improvement, rising 5.8 points from November to 12.1.

The monthly report, compiled by the New York Fed, found optimism for the future among respondents. The index of future business conditions, looking six months ahead, found the index rising 2.4 points to 36.3.

The so-called diffusion index, subtracting the percentage of negative responses from positive ones, indicates growth if the result is positive and contraction if it is negative. The difference from month to month indicates the direction respondents believe conditions are heading.

The prices paid index during December was 37.1, up 8.0 points. The prices received index, mean

while, was down 1.3 points from November to 10.0.

Forward looking indicators, meanwhile, were largely positive, “suggesting that firms remained optimistic about future conditions” the Fed wrote. “The indexes for future new orders and shipments were positive and similar to last month’s readings.

“Employment levels and the average workweek are expected to continue to increase in the months ahead,” the Fed added. Perhaps indicating upward price pressures, the survey said indexes for both future prices paid and received rose for the third month in a row.