Manufacturing activity in New York state shrank in December for the first time in nearly two years, pulled down by a drop in orders and shipments.
The Federal Reserve Bank of New York said Monday that its Empire State Manufacturing index dropped to negative-3.6 in December from 10.2 the previous month. Any figure below zero indicates contraction.
Factories in the state may be slowing after a rapid run-up in business in the fall. The index reached a five-year high of 27.5 in September.
The New York Fed's Empire State survey provides an early look at U.S. manufacturing each month. The New York Fed surveys 200 businesses in the state and typically receives responses from 100.