New York, Tuesday, 18 January 2022 -
The New York Empire State Manufacturing Index fell from 31.9 in December to -0.7 in January 2022, considerably below market expectations of 25.
The figure indicated the first drop in manufacturing activity in New York since the second quarter of 2020, as demand for items fell as the omicron coronavirus variety spread. It also marks the end of 18 months of expansion.
New orders fell somewhat (-5 vs. 27.1), but shipments remained stable (1 vs 27.1). Delivery times was longer (21.6 vs. 23.1), and the number of unfilled orders increased (12.1 vs 19).
According to labour market data, employment increased moderately (16.1 versus 21.4), and the average workweek grew longer (10.3 vs 12.1). Both price indices fell, although their levels remained high (76.7 for prices paid index and 37.1 for received). Capital and technology spending plans were robust.
Firms were optimistic that conditions will improve over the next six months as they looked ahead.
Source: Federal Reserve Bank of New York
(Edited by: The Decision Maker)