Economic Update: Empire Manufacturing Survey
The January 2016 Empire State Manufacturing Survey indicates that business activity hit the worst level since the Great Recession as the headline index declined for a sixth consecutive month.
The headline index – one of the more closely watched indicators due to it being a current report – dove in January to a reading of -19.4. The level was well below the consensus for a reading of -3.0 and also below last month’s revised reading of -6.2 (revised lower from -4.6). November’s reading was -10.7.
According to the report, business activity declined for New York manufacturing firms more sharply than at any time since the 2007-09 recession
The new orders and shipments indexes plummeted, indicating a steep decline in both orders and shipments. Price indexes suggested that both input prices and selling prices increased. Labor market conditions continued to deteriorate, with employment indexes remaining in negative territory. The six-month outlook was noticeably weaker, with the index for future general business conditions falling to its lowest level since early 2009.
The Empire Manufacturing Index is designed to indicate the state of the manufacturing sector in the New York region.
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