Empire State manufacturing index remains negative for fourth consecutive month

Business activity in the New York region remained in negative territory for the fourth consecutive month in November, figures released on Monday showed.

According to the New York Federal Reserve, the Empire State manufacturing index edged higher from -11.4 in October to -10.7 this month, compared with analysts’ expectations for a 6.3 reading.

The figure marked the first time since early 2009 that the index has been below negative 10 for four consecutive months, the report added.

The new order sub-index rose from -18.9 to -11.8, while gauges monitoring shipments and employment also edged higher but inventories declined.

“No-one should be surprised by soft manufacturing data, given the plunge in oil companies' capex, the strong dollar and slowing growth in Asia,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

“The good news, though, is that the Empire State index is not a leading indicator of the national ISM index.”