By Xavier Fontdegloria

 

Business activity in New York's metropolitan area deteriorated substantially in November, falling to a three-month low, data from a survey carried out by the New York chapter of the Institute for Supply Management showed Wednesday.

The ISM-New York Report on Business current business conditions decreased 20.9 points to 44.2 in November, compared with 65.1 the previous month.

The reading is the lowest since the 42.9 figure reported in August, the report said. The activity aligned with every index surveyed, except for prices paid, has slowed down compared with the previous month.

Following the sharp deterioration in current business conditions, the six-month outlook index also fell to a six-month low of 48.6 in November, giving up all of gains reported in October. The indicator, which has been a reliable short-run guide for current business conditions over time, has been volatile during the last seven months, alternating between the 40 and 60 points.

The purpose of the survey is to assess business conditions among firms in the New York City area. A reading of 50 means no change from the prior month, greater than 50 indicates a faster pace of activity, and less than 50 a slower rate.

As for the company specific indexes, the employment index was the largest mover in November's report. Employment fell to 34.6, a five-month low, from 58.4 in October.

The quantity of purchases index declined to 40.0 in November, back to contraction from the 18-month high of 56.7 registered in October.

Current revenue index continued its downward trajectory, falling by 3.8 points in November to reach 42.9. Expected revenue also erased all of the improvement reported in October, falling to 47.5.

The prices paid index, the only index to show a faster pace of growth this month, rose to 65.0 in November from 53.3 the previous month, ISM said.

 

Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com

 

(END) Dow Jones Newswires

December 02, 2020 09:59 ET (14:59 GMT)

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