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New York Business Activity Moderates Its Contraction, Outlook Surges — ISM

By Xavier Fontdegloria

 

Business activity in the New York Metropolitan area moderated its contraction pace in June compared with May, while the six-month outlook surged to a 10-month high, data from a survey taken by the Institute for Supply Management showed Thursday.

The ISM-New York Report on Business current business conditions improved significantly to 39.5 in June, up 20 points from 19.5 in May. The index has gradually recovered from April's 4.3 historic low, registered amid a strict lockdown that put the region's economy into a halt.

Despite the strong increases reported by New York City purchasing managers in both May and June, the indicator is still below the 50-mark that separates economic expansion from contraction. In February, before the pandemic hit hard the region, the index stood at 51.9 points.

The six-month outlook index, seen as a reliable short-run guide for current business conditions over time, increased 19.1 points to 67.1 in June, well above expansion territory and reaching a 10-month high.

The index signals that companies' outlook was more optimistic in June than in pre-pandemic levels, as in February it was at 53.8.

Company-specific indexes painted a mixed picture of business conditions in June compared with May.

The improvement in the quantity of purchases index was significant, rising to 44.7 in June from 28.3 in May, data showed. This represents a seven-month high.

Current revenue rose 1.4 points to 30.6, up from 29.2 in May. Expected revenue, however, slipped 1.7 points to 32.4 in June.

The employment index also fell, albeit fractionally, to 33.5 in June from 33.9 the prior month.

The prices paid index also adjusted downward by 0.4 points to 60.5.

 

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

 

(END) Dow Jones Newswires

July 02, 2020 09:59 ET (13:59 GMT)

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