What is 'NY Empire State Index'

The NY Empire State Index is the result of a monthly survey of manufacturers in New York State. Known as the Empire State Manufacturing Survey, it is conducted by the Federal Reserve Bank of New York. The headline number for the NY Empire State Index refers to the survey’s main index, which summarizes general business conditions in New York State.

BREAKING DOWN 'NY Empire State Index'

The NY Empire State Index is based on survey responses to a questionnaire sent out on the first day of each month to an unchanged pool of about 200 top manufacturing executives, generally the president or CEO. The questionnaire seeks their opinion on the change in a number of business indicators from the previous month and solicits their six-month projections for those indicators. The index is widely watched by professionals and investors for insights on the state and direction of manufacturing in the influential New York State region. The NY Empire State Index is also known as the Empire State Manufacturing Index.

The “general business conditions” component of the index is based on a distinct question posed on the Empire State Manufacturing Survey, and is not a weighted average of the other indicators. These 11 indicators, which are only applicable to the survey respondents' manufacturing facilities in New York State, include the following – new orders, shipments, unfilled orders, delivery time, inventories, prices paid, prices received, number of employees including contract workers, average employee work week, technology spending and capital expenditures. Each index is seasonally adjusted when seasonality is detected.
 
Survey participants are asked to rate the change for each indicator, for “general business conditions” in the previous month compared to the month before, and for six months out. For example, the January survey would ask these executives to rate the change for each indicator compared to December (i.e. “Decrease”, “No change” or “Increase”), and also rate the likely change in six months compared to January.

NY Empire State Index: Sub-indexes

The general business conditions index and the sub-indexes for the other 11 indicators are diffusion indexes calculated by subtracting the percentage of respondents who rate an indicator as “lower”, i.e. a decrease, from those who rate it as "higher”, i.e. an increase. As an example, if 30 percent of survey respondents thought business conditions had improved in the current month, 50 percent believed there was no change, and 21 percent rated conditions as having worsened, the index would show a reading of 9. Index readings are released as absolute numbers (not as percentages) to one place after the decimal.
 

 

RELATED TERMS
  1. Philadelphia Fed Survey

    The Philadelphia Fed Survey tracks regional manufacturing conditions ...
  2. Quarterly Services Survey

    The Quarterly Services Survey is produced by the Census Bureau ...
  3. National Association Of Purchasing ...

    The National Association of Purchasing Managers Index is a monthly ...
  4. Empirical Duration

    The calculation of a bond's duration based on historical data. ...
  5. CEO Confidence Survey

    A monthly survey of 100 CEOs from a variety of industries in ...
  6. Indexing

    In the financial markets, indexing can be used as a statistical ...
Related Articles
  1. Taxes

    START-UP NY: How a Tax-Free Zone Would Work

    START-UP NY is an initiative designed to attract companies to New York State by giving them 10 years of tax breaks. Sounds good, but is it a success?
  2. Insights

    What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  3. Investing

    Smart Beta is Back, Says State Street Survey

    The most recent SPDR report by State Street Global Advisors shows that smart beta is making its return as a popular investment strategy.
  4. Trading

    Using The ISM Manufacturing Index To Find Forex Trends

    Learn the details behind the ISM Manufacturing Index and how you can use this data to find trends in the foreign exchange market.
  5. Investing

    Manufacturing Is Suffering, Consumers Don't Care

    The recent divergence between consumer sentiment and the manufacturing sector's health has continued, with a flurry of data releases Thursday highlighting this rift in the American economy.
  6. Trading

    Using index futures to predict the future

    Want to know whether the stock market will open up or down? Learn about index futures and how they can help predict how the market will trade.
  7. Investing

    5 Things You Need To Know About Index Funds

    Index funds, at their best, offer a low-cost way for investors to track popular stock and bond market indexes. But not all index funds are created equally.
  8. Insights

    Consumer Confidence Index

    The Consumer Confidence Index is the result of a monthly survey of 5,000 U.S. households by the Conference Board that measures how optimistic or pessimistic consumers are about the economy's ...
RELATED FAQS
  1. Is it Possible to Invest in an Index?

    While you cannot buy indexes, which are just benchmarks, we'll show you three ways for you to mirror their performance. Read Answer >>
  2. What are the most common market indicators to follow the U.S stock market and economy?

    Understand some of the key indicators analysts use to follow the U.S. stock markets and to assess the overall condition of ... Read Answer >>
  3. How can I find out if a company I like is included in an index?

    Learn how to find out what indexes include a company's stock. Determine the importance of predicting future price movement ... Read Answer >>
Hot Definitions
  1. Business Cycle

    The business cycle describes the rise and fall in production output of goods and services in an economy. Business cycles ...
  2. Futures Contract

    An agreement to buy or sell the underlying commodity or asset at a specific price at a future date.
  3. Yield Curve

    A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but ...
  4. Portfolio

    A portfolio is a grouping of financial assets such as stocks, bonds and cash equivalents, also their mutual, exchange-traded ...
  5. Gross Profit

    Gross profit is the profit a company makes after deducting the costs of making and selling its products, or the costs of ...
  6. Diversification

    Diversification is the strategy of investing in a variety of securities in order to lower the risk involved with putting ...
Trading Center