New York manufacturing growth took a dip into the red for November, according to a new report (link opens as PDF) released today by the New York Federal Reserve.
Comprised of surveys from around 100 New York executives, the Empire State Manufacturing Survey attempts to determine whether certain components of manufacturing have experienced growth (positive number) or contraction (negative number). Investors watch New York manufacturing (and other regions as well) as a possible signal of larger economic upswings or downturns.
For November, the survey's general business conditions index dropped to -2.2 from October's 1.5 reading. Analysts had high hopes for the Empire State, but their 5.5 estimate proved far too optimistic for this month.
While reasons for the index's dip are widespread, the all-import new orders component took a major 13-point dive to -5.5. Unfilled orders, already in the red at -6.0 for October, dipped further to -17.1. Shipments fell into the red at -0.5, while employment numbers managed to break even for November, although most other current indicators point to potential trouble ahead for the labor market.
Manufacturers' six-month outlook, however, looks slightly rosier. The overall index fell a slight 3.2 points to 37.5, while new orders actually managed a 3.3-point expansion to 40.3.