The Buffalo Purchasing Managers Index (PMI) improved to 61.4 in July, up 8.6 points since June. A reading above 50 indicates growth and this is the fifth month in a row the PMI has been above 50. This is also the fifth month in a row that the Buffalo-Niagara region index has exceeded its national equivalent, the ISM Index. The two indexes have moved in parallel for the last three months after moving in opposite directions for six of previous seven months from October 2012-April 2013.
The stronger PMI readings are consistent with last week’s Empire State Manufacturing Survey for August, which reported that “conditions for New York manufacturers had improved modestly for a third consecutive month.” Optimism about the future was also strong with the Future General Business Conditions Index up 5 points to its highest level in more than a year. Manufacturers went on to predict that 2013 sales/revenues would increase 5% from 2012. For the full report, see http://www.newyorkfed.org/survey/empire/empiresurvey_overview.html