U.S. Manufacturing Activity Shows Modest Decline in April 2025
U.S. Manufacturing Activity Shows Modest Decline in April 2025
On April 15, 2025, the Federal Reserve Bank of New York released the latest Empire State Manufacturing Survey, indicating a continued contraction in manufacturing activity within New York State. The general business conditions index improved to -8.1, up from -20.0 in March, surpassing expectations of -12.8.
Despite this improvement, the index remaining in negative territory suggests ongoing challenges in the manufacturing sector. New orders and shipments continued to decline, with indexes at -8.8 and -2.9, respectively. Employment levels were relatively stable, but the average workweek shortened, indicating reduced labor utilization.
Price pressures intensified, as both input and selling prices rose at the fastest pace in over two years. The prices paid index increased to 50.8, while the prices received index climbed to 28.7. These figures reflect mounting cost pressures on manufacturers.
Looking ahead, firms expressed increased pessimism about future business conditions. The index for future general business conditions fell to -7.4, marking its second-lowest reading in the survey’s history. Expectations for new orders and shipments also declined, and supply availability is anticipated to worsen over the next six months.
This latest data underscores the ongoing challenges faced by the manufacturing sector in New York State, highlighting concerns about demand, labor utilization, and cost pressures. The increased pessimism among firms suggests that these challenges may persist in the near term.
