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The numbers: The Empire State survey of business conditions nosedived to -0.7 points in January from 31.9 in the prior month, the New York Federal Reserve said, reflecting fresh strains from omicron and ongoing supply-chain bottlenecks.
It was the first decline in the index since June 2020. Economists had expected a reading of 25.5, according to a survey by The Wall Street Journal.
Any reading below zero indicates worsening conditions.
Key details: An index of new orders sank 32 points to -5.0 to drive much of the decline in the Empire State survey. Employment also softened.
Businesses saw little relief from high inflation. The prices paid and prices received indexes tapered off slightly, but remained quite high and companies don’t expect much relief in the next six months.
Market reaction: The Dow Jones Industrial Average
DJIA,
and S&P 500
SPX,
were set to open lower in Tuesday trades. Omicron and the prospect of U.S. interest rates rising soon have deflated equities markets lately.
