Manufacturing activity in New York fell off a cliff in December.
The latest Empire State manufacturing report from the New York Fed came in at -3.6.
Expectations were for the reading to come in at 12, up from November’s 10.2 reading.
This was the first negative reading for the measure in almost two years.
According the Fed’s latest report: “Overall, readings for the headline index during the fourth quarter of 2014 mark a significant downshift in activity from the levels seen during the five-month period from May through September.”
The report said that 19% of respondents said business conditions improved over the last month, while 23% of respondents said conditions worsened.
The new orders index also fell into negative territory, tumbling eleven points to -2.0, and the shipments index fell to -0.2. Labour market conditions were mixed, with the index for number of employees holding steady at 8.3, while the average workweek index declined to -11.5.
The six-month outlook for business conditions were lower, but “nevertheless conveyed considerable optimism about future business activity.”
Here’s the chart:
More to come …