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Factory activity in New York leveled off in January compared with the prior month as demand for goods dropped.
Source: Federal Reserve Bank of New York
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The Empire State Manufacturing Survey’s general business conditions index dropped sharply by 33 points to -0.7 in January from December, missing Wall Street’s consensus estimate of 25.5. Any measure above zero signals manufacturing sector is growing.
The slightly negative reading comes after 18 straight months of gains and signals that growth in regional manufacturing activity eased off after a period of massive expansion.
In January, nearly 22% of the firms surveyed stated that business conditions had improved over the month, as 23% indicated that conditions deteriorated.
Demand for goods indicated signs of slowing down. The new orders index dropped sharply to minus 5 from 27.1 the previous month, signaling a slight fall in orders.
Labor market indicators show that firms continued to create jobs, but at a slower rate than the prior month. Respondents to the survey were largely optimistic that business conditions would improve over the next six months.
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