Empire State Manufacturing Index

The Empire State Manufacturing Index is a monthly survey conducted by the Federal Reserve Bank of New York that measures the level of manufacturing activity in the state of New York. The survey asks manufacturing executives about various aspects of their businesses, such as new orders, shipments, inventories, and employment.

The Empire State Manufacturing Index is calculated by taking a weighted average of the survey responses, with values above zero indicating expansion in the manufacturing sector and values below zero indicating contraction. A higher index value indicates stronger manufacturing activity in the region, while a lower value indicates weaker activity.

The Empire State Manufacturing Index is considered a leading economic indicator as it provides insights into the health of the manufacturing sector in the New York region and broader economic conditions. The index is closely watched by investors, policymakers, and analysts as an early indicator of trends in industrial production, employment, and inflation.

The Empire State Manufacturing Index is also used to anticipate changes in other key economic indicators, such as the national-level ISM Manufacturing Index and GDP growth. As such, the Empire State Manufacturing Index is an important tool for understanding the health of the manufacturing sector and overall economic conditions in the United States.