Empire State manufacturing index stays negative for the fifth straight month

The Empire State manufacturing index jumped to -4.6 in December, coming in modestly above forecast  and consensus expectations of -7.0, but continues to be negative territory for the fifth straight month. Shipments surprised to the upside, rising to 5.5 from -4.1 in November. New orders rose as well (-5.1, previous: -11.8), but remained below the neutral mark.

In contrast to these activity indicators, the labor market side of the December report was clearly the weakest in at least three years. The number of employees fell to -16.2 (previous: -7.3) and the average workweek plunged to -27.3 (previous: -14.6).

"We read this morning's report as consistent with the view that the manufacturing sector will continue to struggle from a strong dollar, weak foreign demand and lower commodity prices", says Barclays.