New York manufacturing activity deteriorates in January
Manufacturing activity in the New York jurisdiction unexpectedly deteriorated in January, according to a survey released on Friday.
The New York Fed’s Empire State index fell to 3.5 from 4.9 in December, missing consensus expectations for a reading of 6.0.
According to the survey, 27% of respondents reported that conditions had improved over the month, while 23% said that conditions had worsened.
The new orders index rose to 6.6 from 3.4, while the shipments index declined to 7.3 from 12.1. Meanwhile, the index for general business conditions came in at 31.9 in January, down from 36.3 in December.
Oxford Economics said: "Manufacturing is slated to stay solid in 2021, but growth will likely moderate in the coming months as vaccines quell goods demand and consumer spending tilts back more towards services.
"President-elect Biden’s new fiscal aid plan unveiled yesterday raises the likelihood that our anticipated mid-year ‘mini boom’ in the economy will materialise. To be sure, the near-term economic outlook is relatively downbeat, with high-frequency data pointing to weakening momentum, but the economy should find its footing and grow at a more rapid pace heading in the spring and summer months."