Empire State Manufacturing Index Plummets to 0.2, Easing Inflation Pressures

Dec 16, 2024, 01:31 PM

The New York Federal Reserve's Empire State Manufacturing Index for December 2024 fell to 0.2, significantly below the expected +10.0 and a sharp decline from the previous month's +31.2. This drop marks the largest sequential decrease since May 2023, following a surge to an almost three-year high in November after Donald Trump's election. The index's decline indicates a cooling in manufacturing activity in New York state, with new orders dropping to +6.1 from +28.0. Additionally, inflation pressures are easing as the prices received index hit its lowest level since July 2023, and prices paid reached their lowest in a year. Goldman Sachs forecasts a +0.15% increase in the Personal Consumption Expenditures (PCE) index for November.