US NY Fed Manufacturing (Dec) -14.5 vs. Exp. 2.0 (Prev. 9.1) - lowest since August

• New Orders -11.3 (prev. -4.9)


• Prices Paid +16.7 (prev. +22.2)


• Employment -8.4 (prev. -4.5)


• Six-month Business Conditions +12.1 (prev. -0.9)

Reaction details (13:33)

• T-Notes spiked from 112-16+ to 112-20+ before paring swiftly ahead of NY Fed's Williams.

Analysis details (14:18)

NY Fed Manufacturing in December slumped to -14.5 (the lowest since August) from +9.1, well beneath the expected +2.0 and outside the lower bound of the forecast range (-5.0). Looking at the details, new orders fell for a third straight month to -11.3 (prev. -4.9), while shipments and unfilled orders declined to -6.4 (prev. +10.0) and -24.0 (prev. -23.2), respectively. Delivery times dipped deeper into negative territory while inventories fell below 0. On inflation, prices paid saw a 5.5-point fall to 16.7 while prices received marginally rose 0.4 points to 11.5. Looking ahead, general business conditions rose to +12.1 (prev. -0.9) after plunging in November, a reading that suggests firms were still not very optimistic that conditions would improve in the months ahead. Additionally, new orders and shipments, as well as employment, are expected to increase only modestly over the next six months. The capital spending index remained depressed at 4.2, and the technology spending index came in at 8.3, suggesting that firms’ investment plans remained weak.

15 Dec 2023 - 13:30- Fixed IncomeImportant- Source: Reuters