Empire State Manufacturing (ESM) Index

The Empire State Manufacturing Index (ESM) is a monthly economic indicator published by the New York Federal Reserve Bank. It is designed to provide insights into the manufacturing sector’s overall health in the state of New York.

The ESM is calculated based on data obtained through a survey. Each month, a survey is sent to manufacturing companies in the state of New York, collecting information on their production levels, orders, employment, supply chain, prices, and general business conditions.

The survey results are then calculated into an index, which typically fluctuates around a baseline of 0. Positive values indicate overall growth in the manufacturing sector, while negative values indicate contraction.

The ESM is used to monitor current conditions in the manufacturing sector and to forecast future economic trends. The index comprises a range of sub-components, such as production levels, new orders, employment, inventories, delivery times, prices, and general business conditions. These components provide an overall picture of activity in the manufacturing sector.

The ESM is an important indicator for economists, analysts, investors, and businesses. It is used to understand the performance of the manufacturing sector and overall economic growth. Additionally, the ESM may serve as a benchmark for other states and countries, providing a broader outlook on the manufacturing sector.

The ESM can have a significant impact on financial markets. The index values can influence investor risk appetite and expectations regarding economic growth. Therefore, ESM data is closely monitored and interpreted by the markets.

In conclusion, the Empire State Manufacturing Index (ESM) is an economic indicator that measures the health of the manufacturing sector in the state of New York and helps forecast overall economic trends. It is a valuable tool for monitoring manufacturing activity and understanding economic growth.