New York Fed manufacturing index falls sharply in January

The New York Fed manufacturing index contracted sharply in January after diving into negative territory in December, according to a report released Tuesday.

The Empire State Manufacturing Index, which measures the level of general business conditions in the state of New York, plummeted a massive 22 points to -32.9, after falling 16 points to -11.2 points in December, according to the report by the Federal Reserve Bank of New York.

The market expectation for the index was to come in at -8.7. The index stood at -31.30 in August -- the lowest reading since May 2020 and the second-largest monthly decline on record.

Readings above zero indicate improving conditions while below that show worsening conditions.

"New orders and shipments declined substantially," the New York Fed said in a statement. "Employment growth stalled, and the average workweek shortened."

"Input price increases slowed considerably, and selling price increases also moderated. Looking ahead, firms expect little improvement in business conditions over the next six months," it added.

Source: Anadolu Agency