Empire State Manufacturing Survey Comes In At 19.1, 40% Drop From April: Restocking Over

[Joanne98]

The May Empire Manufacturing Survey came in at 19.1, a huge miss to expectations of a 30 read, and a 40% from the April read of 31.9. Virtually all components of the index posted a deterioration, including Shipments, Unfilled Orders, Delivery Time, with notable declines in Inventories (restocking is over) and the Average Employee Workweek. The one subcomponent which did increase was Price Paid, even as Prices Received contracted once again. Manufacturing margins are now openly getting squeezed. The result of this disappointing read was enough to knock out the wind out of the mysterious rerisk fervor that started at around 3 am, when the first employees at Liberty 33 started showing up at their Bloomberg terminals.

From the survey:

The Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to improve for a tenth consecutive month in May, albeit at a slower pace than in April. The general business conditions index fell 13 points, to 19.1. Similarly, the new orders and shipments indexes also moved lower but remained at positive levels. The inventories index dropped back to a level near zero after rising into positive territory in March and April. The prices paid index continued to climb, reaching its highest level of the year, while the prices received index was little changed and positive. The index for number of employees rose for a fifth consecutive month, reaching its highest level since 2004. Future indexes suggest that activity is expected to expand further in the months ahead, but the level of optimism was noticeably lower in May than in recent months.

And here is Goldman with the damage control. Goldman, which previously pimps the Empire Survey at every chance it can when it beats estimates, now says "This is just the first survey for May, and from a state that is not known for its concentration in manufacturing. We will therefore be looking to other regional surveys." The spin just refuses to die.

http://www.zerohedge.com/article/empire-state-manufacturing-survey-comes-191-40-drop-april

[rfranklin]

1. Okay, can we get serious now?

The attempt to patch up the broken business model which allowed the Too Big To Fail Banks to take over our economy has failed to generate any significant economic impact. We need bigger bolder moves to make our economy work. First, neuter the bankers. Second, stop the importation of workers for all levels of jobs. Third, make it more difficult for Walmart and others to import all that crap from China.

I'm sure that others can come up with some more ideas.

[blue97keet]

6. Agreed, also replace all bankers and economists with engineers

and "free trade" with fail-safe redundancy.

[dmallind]

2. Does 19 demonstrate improvement or worsening? NT

[bossy22]

3. improvement

the issue here is that the improvement in april was less than in previous months

[dmallind]

4. So inother words NY manufacturing is getting better even after a 40 rating last month?

Just getting better at a slower pace than that massive jump?

Damn that's terrible...... and I say that as a NY manufacturing employee BTW

[upi402]

5. The fix? 1st... get an opposition party

to corporatism. Then give me a nudge, I've passed out from starvation.