The New York Federal Reserve’s Empire State business conditions index, a gauge of manufacturing activity in the state, plunged 29.2 points in January to -43.7, its lowest since May 2020. Economists polled by the Wall Street Journal had expected a reading of -4. The index for new orders dropped 38.1 points to negative 49.4 in January. Shipments fell 24.9 points to negative 31.3 points. Unfilled orders continued to shrink significantly and delivery times shortened. Employment and hours worked also contracted. Optimism picked up but was subdued. The index for future business conditions climbed 7 points to 18.8. The capital spending increased 10 points to 13.7.
