New York State business activity rebounds sharply

Business activity in New York State rebounded in December after contracting sharply in November for the first time since mid-2009.

The index showing general business conditions in New York State rose to 10.6 points in December from minus 11.1 points in November, the Empire State Manufacturing Survey from the Federal Reserve Bank of New York said on Wednesday.

Markets had expected New York’s general business conditions index to rebound to 3 points in December.

The percentage of respondents reporting that conditions had improved advanced from 17 percent to 30 percent, and the percentage reporting that conditions had worsened declined from 28 percent to 19 percent, the survey said.

The index for new orders climbed above zero to 2.6 points in December, up 27 points from the previous month. The shipments index moved up 13 points, to 7.1.

Besides, the inventories index fell 16 points to -15.9, suggesting a significant drop in inventory levels.

The survey showed index of inputs prices paid by the manufacturers accelerated in December, increasing by 6 points to 28.4 points.

However, employment levels in the State fell in December with the corresponding index dropping by 13 points to -3.4 points, posting a cumulative decline of 25 points over the past two months.

The index showing outlook for the next six months was lower than last month at 48.9 points, but still close to the relatively high readings seen earlier in the year.

The index of capital spending in the next six months held steady at 22.7, while the technology spending index rose 9 points to 19.3.