Firms are paying more for supplies, but aren’t really passing those increases on to consumers, the Empire State Manufacturing Survey, released Thursday by the Federal Reserve Bank of New York, suggested.
“After reaching a multiyear high last month, the prices paid index moved up further, reflecting ongoing and widespread increases in input prices,” the report said. “The prices received index held steady and suggested moderate selling price increases.”
The general business conditions index gained to 22.5 in March from 13.1 in February.
The new orders index grew to 16.8 from 13.5, while the shipments index rose to 27.0 from 12.5, and unfilled orders increased to 12.7 from 4.9, the Fed said.
The delivery time index climbed to 16.2 from 11.1, while the inventories index crept to 5.6 from 4.9 in the prior survey. The prices paid index climbed to 50.3 from 48.6, while the prices received index rose to 22.4 from 21.5. The number of employees index slid to 9.4 from 10.9, while the average employee workweek index rose to 5.9 from 4.6, the Fed reported.
Looking six months into the future, the general business conditions index fell to 44.1 from 50.5 last month. The new orders index decreased to 43.0 from 47.2, while the shipments index declined to 43.3 from 46.7, and unfilled orders dropped to 7.0 from 16.7, the Fed said. The delivery time index decreased to 5.6 from 15.3, while the inventories index grew to 12.0 from 9.0.
The prices paid index gained to 55.9 from 52.1, while the prices received index rose to 28.0 from 25.7. The number of employees index grew to 23.3 from 19.5 while the average employee workweek index slipped to 14.7 from 20.8, the Fed reported. The capital expenditures index decreased to 29.4 from 31.9. The technology spending index fell to 18.9 from 23.6.