After observing a notable surge in regional manufacturing activity last month, the Federal Reserve Bank of New York released a report on Monday indicating a significant decline in the index for December.
The report stated that the general business conditions index dropped sharply to 0.2 in December, following a jump to 31.2 in November; however, a positive reading still signifies growth. Analysts had anticipated a decrease in the index to around 12.0.
The more pronounced decline than expected in the general business conditions index followed its peak at the highest level since December 2021 in the prior month.
This decrease in the headline index was attributed to marked declines in the new orders and shipments indexes, both of which fell significantly yet remained positive.
Specifically, the new orders index decreased to 6.1 in December from November’s 28.0, while the shipments index fell to 9.4 from November’s 32.5.
The report also indicated a downturn in employment, as represented by the number of employees index, which dropped to -5.8 in December from 0.9 in November.
Additionally, the data showed that the prices paid index declined to 21.1 in December from November’s 27.8, and the prices received index decreased to 4.2 from 12.4.
Looking forward, the New York Fed reported that businesses maintain a degree of optimism for future conditions, although the index for anticipated business activity slid to 24.6 in December from November’s 33.2.
The material has been provided by InstaForex Company -
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