Firms responding to the Manufacturing Business Outlook Survey suggest that growth was positive but tenuous this month. The diffusion index for current general activity moved from a negative reading to a marginally positive reading, while the indicators for new orders and employment suggested continued general weakness in business conditions. Of the current broad indicators, the diffusion index for shipments recorded the strongest reading. The respondents were confident about future growth, as their forecasts of future activity showed notable improvement.

The index for current manufacturing activity in the region rose 5 points to only 2.0 in August, as the share of firms reporting an increase in activity (35 percent) barely exceeded the share reporting a decrease (33 percent). This is only the third positive reading of the index in the current year.

The current new orders index dropped significantly from a reading of 11.8 in July to -7.2 in August.

The survey's indicators of employment weakened considerably. The employment index fell 18 points to -20.0, which is its largest negative reading for the current year.

The survey's indicators of employment weakened considerably. The employment index fell 18 points to -20.0, which is its largest negative reading for the current year.