The Federal Reserve Bank of New York reported Monday that its Empire State Manufacturing Survey general business-conditions index tumbled 14 points to -3.6 in December, the first negative reading in nearly two years.
Market analysts were expecting a positive reading of 14.0, according to Yahoo Finance data.
About 19 percent of Empire State Survey respondents reported that conditions had improved over the last month, while 23 percent said that conditions had worsened, according to the New York Fed.
The readings for the headline index during the fourth quarter of 2014 mark a “significant downshift” in activity from the levels seen during the five-month period from May through September, according to the news release posted on the New York Fed’s website.
The survey’s new-orders index also dipped into negative territory, tumbling 11 points to -2.0 in December, and the shipments index declined to -0.2.
Labor-market conditions were mixed, with the index for number of employees holding steady at 8.3, while the average-workweek index declined to -11.5.
The prices-paid index was little changed at 10.4, indicating a “continued modest increase” in input prices, while the prices-received index climbed to 6.3, the New York Fed said.
Indexes for the six-month outlook continued to convey optimism, but to a “somewhat lesser extent” than in recent months, it added.
The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.
Contact Reinhardt at ereinhardt@cnybj.com