New York Fed Survey Shows Manufacturing Growth Abruptly Stalled

The growth of the manufacturing sector in New York state abruptly and unexpectedly stalled in the first weeks of 2021, a survey from the Federal Reserve Bank of New York showed Tuesday.

After eighteen months of positive readings indicating growth, the general business conditions of the New York Fed’s Empire State Manufacturing Survey fell a steep thirty-three points to -0.7. Economists had forecast the index to decline slightly from 31.9 in December to 26, a level that would have indicated a very strong rate of growth.

The reading is the first indication of the health of the manufacturing sector in January. It is being looked to as an indicator for how the omicron surge in coronavirus infections may be impacting the economy. The survey indicates that the variant may be taking an even steeper toll than economists anticipated.T

The gauge of new orders showed a severe decline, falling 32 points to a negative five reading. That indicates orders fell. The shipments index declined to a reading of one, indicating that growth has ceased. Unfilled orders rose and delivery times continued to lengthen significantly.- READ MORE