August 2020 ISM-New York Report on Business: Not July, But Still an Improvement

NEW YORK, Sept. 2, 2020 /PRNewswire/ -- In August, New York City purchasing managers reported a similar trend in Current Business Conditions, Employment, and Current Revenues - a drop from July, but the second highest levels marked since February.

"Clearly there is continued uncertainty: in the short term, at the company level, and for the New York metro area," said Kelly Barner, ISM-New York's Business Survey Chair and Owner of Buyers Meeting Point. "The best news is longer term, as the six-month outlook and expected revenues were up in August."

New York Metro
Current Business Conditions dropped below the breakeven point, falling 10.6 points to 42.9 in August. This is the second highest finding since February (51.9) and also the largest change in this month's report.

The Six-Month Outlook rose from 49.6 in July to 61.7 in August. Although this is an improvement over last month, it falls short of the 67.1 reported in June. The six-month outlook has been a reliable short-run guide for current business conditions over time.

Company Specific
Employment, a seasonally adjusted index, moved below the breakeven point to 38.8 in August, down from 50.3 in July. This is the highest level reported since February (49.3).

Quantity of Purchases rose to the breakeven point of 50.0 in August, up from 42.0 in July. This is a 12-month high; the index was at precisely the same level in August of 2019.

Top line and forward revenue guidance moved in opposite directions, yet both remained below the breakeven point, as they have since February. Current Revenues fell 3.8 points to 40.0 after three months of gains. Despite the fall, this is still the second highest Current Revenues finding since February (58.3). Expected Revenues rose 3.7 points to 43.3 in August, reaching a 6-month high and increasing for the second consecutive month. 

Prices Paid rose to a 7-month high of 67.9, up from 64.0 in July.

About the ISM-New York Report on Business
The survey results are compiled as diffusion indices. A reading of 50% means no change from the prior month, greater than 50% indicates a faster pace of activity, and less than 50% a slower rate.

Current Business Conditions, Six-Month outlook, NY-BCI, and the Employment index are seasonally adjusted. All other measures are not. For more information visit http://www.ismny.com/reports-on-business/

SOURCE Buyers Meeting Point, LLC