Input Stories

Manufacturing activity in New York state decreased in December, with the headline general business conditions index falling 22.6 points to -3.9. The new orders index declined 15.9 points to 0.0, indicating new orders were flat from November, while the shipments index dropped 22.5 points to -5.7. Unfilled orders moved down from -5.8 to -14.9, while inventories slipped 2.7 points to 4.0, indicating business inventories continue to grow but at a slower pace. Delivery times shortened, and supply availability improved but remained negative, increasing 4.6 points to -6.9.

Employment increased in December, with the index for the number of employees inching up 0.7 points to 7.3. Meanwhile, the average employee workweek declined to 3.5 from 7.7, signaling a smaller increase in hours worked than in November. The prices paid index fell 11.4 points to 37.6, while the prices received index moved down 4.2 points to 19.8, a reflection of a slower pace of increase for prices received and prices paid.

In December, firms’ optimism regarding the future rose to a yearly high. The future business activity index gained 16.6 points, rising to 35.7. In the next six months, new orders are expected to increase and at a faster pace compared to the prior month at 38.0. The future employment index decreased 3.1 points to 8.8, suggesting an anticipated slower pace of employment growth over the next six months. Meanwhile, input prices are expected to rise at a slower pace, declining from 62.5 to 55.4, while selling price expectations are forecasted to increase at a faster pace, moving up from 41.3 points to 46.5. Furthermore, capital spending plans weakened from November, down from 11.5 to 6.9.