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NY manufacturing now at 5-month decline, index shows
New York manufacturers said superstorm Sandy's effect on business has mostly dissipated in December, in contrast to reporting revenue declines in October and November because of the storm, according to the Empire State Manufacturing Survey.
The monthly report of manufacturing activity compiled by the Federal Reserve Bank of New York also reported that manufacturing activity in the state had fallen for the fifth consecutive month. The general business conditions index was still negative -- indicating a contraction in manufacturing -- and fell about three points to minus 8.1 this month.
The new orders index also fell seven points to minus 3.7, after rising above zero last month for the first time since June. The negative reading points to a decrease in demand.
In a report from Bloomberg News, Lakeland Industries in Ronkonkoma, a maker of protective work clothing, attributed the decrease in demand to the impending "fiscal cliff."The company said it is seeing domestic and overseas firms holding back on spending as American lawmakers debate how best to avert the fiscal cliff, about $600 billion in tax increases and budget cuts set to begin in early 2013.
“A lot of people are not spending money, they’re sitting back waiting for resolution in Washington," Christopher Ryan, chief executive of Lakeland Industries, said in a Dec. 13 conference call that was quoted in the Bloomberg report. "And when I talk to some of the international markets they’re doing the same thing."
Earlier this month, the Institute for Supply Management reported that the national factory index fell to 49.7 in November from 51.7 in October. A reading below 50 indicates a decline in activity.
Photo: An example of Lakeland Industries protective garments. The Ronkonkoma-based manufacturer says "fiscal cliff" budget gridlock is having an effect on its business.