NY Federal Reserve sees improvements in manufacturing
A new survey by the Federal Reserve Bank of New York found optimism among the state's manufacturers in January.
According to the monthly survey of 200 manufacturing executives (about 100 respond according to the Fed):
- General business climate improved by 5 points.
- New orders rose 8 points.
- Optimism about the six-month outlook rose 9 points.
Most encouraging, according to Randy Wolken, president of the Manufacturing Association of Central New York, were improvements in the number of manufacturers that expect to hire new workers.
Among the executives that responded, 50.5 percent said they plan to hire new workers within the next 6 to 12 months, and only 8 percent said they expect their workforce to decrease.
The new hiring is a welcome addition to the economy's slow recovery according to Wolken.
"Usually what companies do is they make investments in new technology or have existing workers work longer hours for overtime but they've reached their limit on that and then they start hiring again so it's a very positive development," he says.
Wolken pointed to New York's improved political climate and the nationwide recovery taking hold in New York also as driving factors in the positive manufacturing climate.