US: NY Empire State Manufacturing Index rose to 31.90 in December vs. expected drop to 25.00
|- The NY Fed Manufacturing Index rose unexpectedly to 31.90 in December.
- The strong report was ignored due to a simultaneous release of weaker than expected US retail sales numbers.
- FX markets are focused on the Fed policy announcement later in the session.
The headline General Business Conditions Index of the NY Fed's Empire State Manufacturing Survey surprisingly rose to 31.90 in December, up from 30.90 in November. That was a beat on the market's median forecast for a decline to 25.00.
Additional Takeaways as per the NY Fed's report:
"Business activity continued to grow strongly in New York State."
"The new orders index and shipments indexes were both little changed at 27.1, pointing to another month of strong growth in both areas."
"The index for number of employees came in at 21.4, indicating a solid increase in employment, and the average workweek index fell to 12.1, suggesting a modest increase in hours worked."
"The prices paid index edged down three points to 80.2, and the prices received index fell six points to 44.6, signaling ongoing substantial increases in both input prices and selling prices, though at a slightly slower pace than in November."
"Firms were generally optimistic about the six-month outlook, though optimism remained below levels seen in September and October. The index for future business conditions held steady at 36.4."
Market Reaction
The strong NY Fed survey result was largely negated, as far as FX markets are concerned anyway, by a weaker than expected November Retail Sales report. The DXY saw a slight dip as a result but remains close to session/recent highs in the 96.50 area as the Fed policy announcement looms.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.