Empire State index retreats unexpectedly in December

Manufacturing sector conditions in the state of New York and northern New Jersey worsened unexpectedly at the end of the year, according to one of the most widely-followed surveys for the sector.

The Federal Reserve bank of New York's manufacturing sector index fell from a reading of 23.3 for November to 10.9 in December, missing economists' forecast for a reading of -12.4.

The New York Fed's area of jurisdiction encompasses, the state of New York, the 11 northernmost counties of New Jersey, Fairfield county in Connecticut, Puerto Rico and the US Virgin Islands.

A key sub-index of new orders dipped from a reading of 20.4 for the month before to 14.5, while another sub-index linked to the prices paid by companies fell from 44.5 to 39.7.

Subindices tracking employment conditions fared better, with one tracking staffing levels jumping from 14.1 to 26.1 although another which measures the length of the average employee workweek dipped by 1.2 points to from the month before to hit 8.0.