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Manufacturing activity weakened in Pennsylvania, New Jersey, Delaware and New York in December, according to the Federal Reserve banks of Philadelphia and New York.

Philadelphia: The Philadelphia Federal Reserve Manufacturing Index fell by 8.5 points to -10.2 this month, far lower than the forecasted reading of 2.5 and the previous month’s -1.7.

• Nearly 28% of firms reported decreases in general activity this month (down from 31% in November), while roughly 18% experienced increases (down from 29%); 51% saw no change (up from 40%).
• However, shipments (up nearly 12 points to 3.2) and new orders (up 13.6 points to 5.0) both rose this month after moving into negative territory in November.
• The employment index increased from 6.0 to 12.9, its highest reading since May.

Empire State: The Empire State Manufacturing Survey’s headline general business conditions index dipped nearly 23 points to -3.9 after rising the previous two months.

• New orders held steady while shipments decreased modestly. Delivery times quickened, unfilled orders declined, and supply availability improved but remained negative, indicating continued contraction.
• Employment increased slightly, as did the average employee workweek, but at a slower pace than the prior month.

Bellwethers: Both surveys are watched closely by economists and investors for their ability to reveal early trends about the larger manufacturing industry.