Monday, December 17, 2012

Empire State Manufacturing index indicates further contraction

by Bill McBride on 12/17/2012 08:40:00 AM

From the NY Fed: Empire State Manufacturing Survey

The December 2012 Empire State Manufacturing Survey indicates that conditions for New York manufacturers continued to decline at a modest pace. The general business conditions index was negative for a fifth consecutive month, falling three points to -8.1. The new orders index dropped to -3.7, while the shipments index declined six points to 8.8. At 16.1, the prices paid index indicated that input prices continued to rise at a moderate pace, while the prices received index fell five points to 1.1, suggesting that selling prices were flat. Employment indexes pointed to weaker labor market conditions, with the indexes for both number of employees and the average workweek registering values below zero for a second consecutive month. Indexes for the six-month outlook were generally higher than last month, although the level of optimism remained at a level well below that seen earlier this year.
The index for number of employees rose five points to -9.7, while the average workweek index declined three points to -10.8.
emphasis added
The general business condition index declined from -5.22 in November to -8.1 in December - the fifth consecutive negative reading. This was another weak manufacturing index and below expectations of a reading of 0.0.