Business activity in the New York City area barely expanded in April, and city businesses are less optimistic about the future.
By Kathleen Madigan
The Institute for Supply Management-New York's Current Business Conditions index fell to 50.6 in April from 52.0 in March and 57.0 in February. April's fall was the third consecutive decline and puts the index at its lowest reading since June 2013. An index reading above 50 indicates expanding activity.
When asked about impediments to business, the costs of benefits was number one, but the report said, "Competition has risen sharply as an impediment in April."
The current indexes weakened sharply last month. The purchasing-volume index dropped to a contractionary 41.7 from 52.3 in March and 60.0 in February.
The employment index declined to 43.1 last month from 57.8 in March. The current revenues index slipped to 56.3 from 58.7.
Businesses, at least, are seeing some cost relief. The prices paid index dropped to 57.7 last month from 65.2.
New York City purchasing managers are also more worried about the future.
The six-month outlook index fell to 58.8 from 65.6 in March. The April reading is the lowest since May 2009, the report said.
The expected revenues index fell to 62.5 from 66.7.
If there was some good news in the report, it was related to skilled labor. The ISM-NY said "skilled labor has risen as an opportunity." In the past the lack of skilled workers was seen as an impediment.
"Firms may be exploring the job market for more valuable workers to improve competitiveness," the report said.
The ISM-NY releases its activity report, which comprises mainly non-manufacturers, one business day before the national ISM non-manufacturing report, which is typically released on the third business day of each month.
Write to Kathleen Madigan at kathleen.madigan@wsj.com
(END) Dow Jones Newswires
May 02, 2014 09:45 ET (13:45 GMT)
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