Empire State Manufacturing: Factory Activity Declines Moderately

December 15, 2015
The Empire State Manufacturing Index ROSE by 6.2 point in December to -4.6%, compared with market expectations for a decline to 7.0%. On an ISM-weighted basis, the index deteriorated, more than the headline, indicating that the details were weaker than the headline figure. New Orders declined by -5.1% compared to -11.8% last month. Shipments rose moderately by 5.5%. Consequently, Unfilled Orders continued to decline. Inventories also declined for the 6th consecutive month. Prices Paid index decelerated slightly. Prices Received index declined modestly for the 4th consecutive month. Employment fell by -16.2% while Average Workweek also declined sharply for the 5th consecutive month. The 6-Month Outlook improved. Bottom Line: General business conditions for New York manufacturers contracted for the 5th consecutive month but less than last month. New orders declined while shipments increased and the 6-month outlooks of survey participants improved. Hiring expectations fell and were worse than in November and October, showing a sharp decline in both employment levels and hours worked. On an ISM weighted basis Empire State fell by -5.8% vs. -9.4% last month. Overall this was still a weak start to the release of several regional manufacturing surveys over the coming weeks.
Article by contingentmacro