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Regional Manufacturing Outlook
Monday | 25 January, 2016 | 3:38 pm

New England/Northeast

Written by By Modern Metals' staff

Despite mixed year-end revenues, manufacturers to raise 2016 spending

MM 0116 regional lead2

January 2016 - Companies commenting on year-end conditions to the Federal Reserve Board’s Boston district, which covers New England, provided an uneven view of their revenues, with about half saying low oil prices and the “idiosyncratic cycle of the semiconductor business” played roles.

Several firms mentioned China. A manufacturer of elevators and other construction-related goods cited sharply falling infrastructure spending in China. But a supplier of testing and lab equipment for medical uses reported that sales in China were exceptionally strong.

Inventories were mixed. Several firms report lower inventories, but one maker of semiconductor testing equipment says it is buying more inventory in anticipation of strong demand in the new year. All but one firm report that they are increasing or maintaining employment at current levels.

Capital expenditures are in line with plans; for most firms, this means they are up versus the same period last year. Several companies plan to boost spending on research and development. Boston Fed survey respondents’ outlooks for the new year were generally optimistic, including a business engaged in life sciences.

New York Fed district manufacturers, however, saw a further weakening in  activity and were somewhat less optimistic about the near-term outlook.

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