The Empire State Manufacturing survey for August 2010 is out. While the overall business conditions index is 7.10 for August, up from July's 5.08, new orders is the real story. New orders are -2.71. In July, new orders were indexed at 10.71.

New orders is an indicator of future business activity. Bear in mind, this survey represents just New York, not the entire country.

Shipments also were down for August, -11.50, from 6.31 in July. Manufacturing shipments affects GDP estimates. Inventories flat lined at 2.86, down from July's 6.35.

The only good news for New York Manufacturing area was employment. The employees index was 14.29 for August. In July the number of employees index was 7.94. The average work week also went positive for August, to 7.14. July's average workweek was -9.52.