Empire State Manufacturing Activity Plummets, New Orders Decline -14.5 Index Points

The Empire State index tumbled 24 points compared to November, falling to -14.5 points. Analysts were counting on remaining in the positive zone, at 4.0 points.

Manufacturing activity in the highly industrialized New York region deteriorated sharply in December, with new orders falling for the third month in a row.

The index measuring this activity fell by 24 points compared to November, to fall to -14.5 points, according to the monthly Empire State survey published Friday by the New York branch of the Federal Reserve (Fed), and considered a good barometer of the American economy.

The deterioration is much stronger than expected, since analysts saw the index falling compared to the previous month, but remaining in positive territory, and settling at 4.0 points, according to the Market Watch consensus.

“New orders fell for a third straight month and shipments also declined. Order books continued to decline considerably,” detailed the New York Fed in its press release.

Furthermore, “delivery times have shortened at the fastest rate since well before the pandemic” and “stocks have decreased,” it is specified.

On the employment side, the Fed also reports a slight decrease.

Businesses, however, “were a little more positive in December” than in November, “but their optimism remained quite moderate.”

The Fed, which for almost two years has wanted to slow down economic activity in order to see inflation fall, met on Tuesday and Wednesday, and maintained its rates in the range of 5.25 to 5.50%. .

Because the effects of his policies are starting to be felt in the real economy.

“Recent indicators suggest that growth in economic activity has slowed since its solid pace in the third quarter,” commented the Fed’s monetary policy committee, the FOMC, in the press release published Wednesday at the end of its meeting.

2023-12-15 14:06:48
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