The Market Ticker
Commentary on The Capital Markets- Category [Macro Factors]

Oops....

The December 2014 Empire State Manufacturing Survey indicates that business activity declined for New York manufacturers. The headline general business conditions index dropped fourteen points to -3.6, its first negative reading in nearly two years. The new orders index also fell into negative territory, tumbling eleven points to -2.0, and the shipments index fell to -0.2. Labor market conditions were mixed, with the index for number of employees holding steady at 8.3, while the average workweek index declined to -11.5.

But but but....... the jobs market and manufacturing are doing great!

The problem with cooking the books is that eventually someone stands up and calls "BS!"

It appears that day has arrived.

That is a major retreat, and wildly below expectations.  Nor is it only in shipments either; forward order conditions fell even more-so than did shipments, and unfilled orders contracted to a -23.96, with only about 9% of survey recipients indicating a greater backlog.

Inventories were also drawn down, so it doesn't exactly look like this was "unanticipated" either -- yet you heard exactly nobody talking about this last month -- despite the fact that the workweek contraction was apparent in the last report.

Gee, I wonder why?

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