After two consecutive months of strong growth, manufacturing activity in New York State in the US unexpectedly contracted in December due to stagnant orders and a decline in shipments. The New York Federal Reserve's overall business condition index fell about 23 points to -3.9. A reading below zero indicates a contraction in economic activity, while economists' median expectation is 10. Despite setbacks, the overall outlook index for the next six months rose 16.6 points to its highest level since this year due to increased optimism about orders and shipments. The order outlook index also climbed to its highest level since 2022. The improved outlook is certainly good news for the manufacturing industry, which is struggling due to factors such as rising input prices, fluctuating demand, and trade policy uncertainty.

After two consecutive months of strong growth, manufacturing activity in New York State in the US unexpectedly contracted in December due to stagnant orders and a decline in shipments. The New York Federal Reserve's overall business condition index fell about 23 points to -3.9. A reading below zero indicates a contraction in economic activity, while economists' median expectation is 10. Despite setbacks, the overall outlook index for the next six months rose 16.6 points to its highest level since this year due to increased optimism about orders and shipments. The order outlook index also climbed to its highest level since 2022. The improved outlook is certainly good news for the manufacturing industry, which is struggling due to factors such as rising input prices, fluctuating demand, and trade policy uncertainty.