New York Manufacturing Activity Stalled in January -- NY Fed
By Xavier Fontdegloria
Factory activity in the New York state leveled off in January
compared with the previous month as demand for goods declined,
according to data from a survey compiled by the Federal Reserve
Bank of New York released Tuesday.
The Empire State Manufacturing Survey's general business
conditions index fell sharply to minus 0.7 in January from 31.9 in
December, missing the 25.5 consensus estimate from economists
polled by The Wall Street Journal. Any reading above zero suggests
that the region's manufacturing sector is expanding.
The slightly negative reading follows 18 consecutive months of
gains and suggests that growth in regional manufacturing activity
stalled after a period of significant expansion, the New York Fed
In January, around 22% of the firms polled said business
conditions had improved over the month, while 23% reported that
Demand for goods showed signs of faltering. The new orders index
fell sharply to minus five from 27.1 the previous month, pointing
to a slight decline in orders. The shipments index declined to one,
suggesting that shipments were broadly unchanged.
Labor market indicators signal that firms continued to create
jobs, but at a slower pace than in the previous month. The index
for number of employees fell five points to 16.1, while the average
workweek index dropped to 10.3, the report said.
The delivery times index fell slightly to 21.6, suggesting that
input delivery times continued to lengthen, though by less than in
December. Unfilled orders increased, though at a slower pace than
the previous month, in a sign that supply-chain bottlenecks aren't
The price indexes moved lower, but remained elevated. The prices
paid index declined to 76.7 from 80.2, and the prices received
index fell to 37.1 from 44.6. Both indicators point to substantial
increases in both input and selling prices, though at a slower pace
than last month, the NY Fed said.
Respondents to the survey were generally optimistic that
conditions would improve over the next six months, the report said.
The index for future business conditions decreased slightly to 35.1
from 36.4, but remained in solid expansion territory, with firms
reporting strong plans for capital and technology spending in the
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
January 18, 2022 08:51 ET (13:51 GMT)
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