Washington (awp / dpa) – Manufacturing activity in the New York City area started the year as it ended 2020, slowing down, disappointing expectations, according to the Empire State monthly indicator released by the Fed on Friday.
The index measuring general business conditions in this sector fell 1.4 points to 3.5 points. This is less than expected by analysts, who were counting on 6 points.
However, as long as the indicator is above 0, it means that the activity is still growing.
This is the 4th month in a row of slowdown for this key region of the United States.
In detail, if the component measuring new orders and that relating to the price increased sharply (+6.6 and +8.4 points respectively), the index measuring employment lost 3 points to 11.2 points.
The country remains in the grip of the covid-19 pandemic which has even regained strength since the end of 2020.
Against this backdrop, companies were somewhat less optimistic about the region’s economic conditions over the next six months, with the component losing 4.4 points from December.
The survey was carried out between January 4 and 11.
The index fell to historic lows in April and May 2020 when the city was completely contained to stem the Covid-19 pandemic which has severely affected the population of New York.
Then, it had climbed in June – while remaining in the red – thanks to the partial reopening of the economy. The recovery then started in July before slowing down in the fall.
afp / rp