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The numbers: The New York Fed’s Empire State business conditions index rose 1 point to 31.9 in December, the regional Fed bank said Wednesday. Economists had expected a reading of 25, according to a survey by The Wall Street Journal.
Any reading above zero indicates improving conditions.
Key details: The new-orders index slipped 1.7 points to 27.1, and the shipments index fell 1.1 points to 27.1.
Unfilled orders rose 6.3 points to 19 in December while delivery times fell 9.1 points to 23.1.
Both the prices paid and prices received indexes inched lower but remained near record highs in December.
The employment index slipped 4.6 points to 21.4 while the average workweek fell 11 points to 12.1.
Firms remain optimistic about the next six months.
Big picture: Manufacturing appears to be holding its strength in the final month of the year, remaining not far below the all time high reading of 43 in July.
The Empire State index has been volatile recently and economists had expected it would retreat after surging 11 points in November. It looks like firms continue to navigate supply chain disruptions in order to meet strong demand.
Economists use the New York factory data as an early proxy for the closely-watched national factory index released by the Institute for Supply Management on the first work day of the month.
In November, the ISM index rose to 61.1% from 60.8% in the prior month. That’s the 18th straight month the index has been above the 50 level that indicates expansion in the manufacturing sector.
Market reaction: Stocks
DJIA,
SPX,
were set to open lower Wednesday ahead of the key Fed meeting decisions coming later in the afternoon.
