By Ian McKendry
WASHINGTON (MNI) – New York City business activity expanded for the
first time in three months in July, according to the survey published
Thursday by the Institute for Supply Management-New York.
The ISM-NY also introduced two new indices to its survey while
removing another.
The report said current business conditions rose to 55.2 in July
after falling in May and June, but still remained six points below the
April level of 61.2.
The six-month outlook improved by six points, the highest it has
been since April when it was 63.1 and the cumulative conditions index
rose 2.6 points to 559.8.
The report also introduced for the first time a “Revenues” index
and an “Expected Demand” index, replacing the “Supplier Delivery Times”
index included in previous reports.
“Both measures are more non-manufacturing oriented, have a
six-month history from February 2012, and both have downshifted in the
last two months from stronger readings earlier in the year,” ISM-NY
said.
The report said while many surveyed participants saw “no
difficulties” hindering business, others noted shortages of skilled
labor and working capital.
The report said there was a 9% increase in respondents noting a
shortage of skilled labor — the largest increase in eight months.
July’s special question was businesses’ plans for worker
compensation during the next six months.
“Net plans to raise comp were more prevalent this year compared to
last,” the report said, adding “this is because fewer firms are planning
cuts as opposed to more firms planning increases.”
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$,MAUDR$]
