Although readings for unfilled orders and delivery times rose somewhat, they remain weak. Firms report weaker manufacturing employment this month. Diminish Eighteen percent of the firms surveyed reported price increases for inputs, but nearly 11 percent reported decreases this month. Despite continued weakness in manufacturing, expectations regarding the next six months remain relatively optimistic. More than 46 percent of firms expect an improvement in business conditions over the next six months, compared with 21 percent expecting deterioration.
Similar optimism is reported for future new orders and shipments.
The future shipments index increased from 24.0 in March to 32.0, and the future new orders index increased from 25.8 to 27.5. Firms' expectations regarding employment are also encouraging. More than 35 percent of the manufacturers expect increases in employment over the next six months, compared with 18 percent expecting decreases. The future employment index increased significantly, from 0.9 to 17.8, its highest reading since February 2000. Plans for capital expenditures, however, continue to be depressed.