The Empire State Manufacturing Survey surprised industry experts with a drastic drop in expectations, despite the headline number showing improvement in manufacturing conditions.
Expected to only improve to -3, the headline number rose back into expansion at 9.1, crushing the predicted expectations.
However, the report revealed a mammoth 24-point plunge in expectations month over month, ranking as the fourth largest one-month decline in the survey’s history.
The report indicated weak demand as new orders currently remain in contraction. Meanwhile, Unfilled Orders are far more depressed at -23.2 making the November reading the lowest since December 2014.
Shipments improved slightly, while inventories saw a significant uptick, reaching the highest level in half a year.
Employment metrics were also weak with both the number of employees and average workweek indices sitting in contraction.
Capital spending expectations hit a new low, signaling a concerning trend in the manufacturing sector.
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