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NY factories, metro service firms scale back expectations: NY Fed

The New York Fed on March 16, 2012.

The New York Fed on March 16, 2012. Credit: Craig Ruttle

Factories in New York State and service firms in the metropolitan area have scaled back their hiring plans and sales forecasts for the second half of this year, according to two new surveys.

The Federal Reserve Bank of New York reported Thursday that nearly five in 10 manufacturers polled earlier this month said they have reduced their sales projections for the July-December period. About four in 10 retailers and other service firms also cut their sales expectations.

More plants and service firms are now reducing their sales forecasts for the second half of the year than were doing so a year ago.

Factories in the state and service firms in the New York metro area both expect to end 2015 with sales up 4 percent compared with a year earlier. That mirrors 2014's sales predictions.

The New York Fed this month surveyed about 100 plants across the state and about 100 merchants and other service firms on Long Island, in New York City and its northern suburbs.

With the decrease in hiring expectations, the typical factory and service firm now doesn't foresee a change in staffing levels this year compared with 2014.

"However when asked about capital spending for the full year, the median manufacturing respondent projected a 5 percent hike, while the median service-sector respondent anticipated a 2 percent hike," the New York Fed said in a report accompanying the polls.

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