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Bloomberg News/Landov The factory data did have a bit of a silver lining – a pickup in optimism about future conditions and spending plans.
The numbers: The New York Fed’s Empire State business conditions index showed subdued conditions for manufacturing in the state for the seventh straight month. The index inched up 0.6 points to 3.5 in December, the New York Fed said Monday. Economists had expected a reading of 4.0, according to a survey by Econoday.
Any reading above zero indicates improving conditions.
What happened: The new-orders index fell 2.9 points to 2.6 in December while shipments rose 3.1 points to 11.9. Unfilled orders continued to decline.
If there was a silver lining in the data, optimism about the six-month outlook did improve. Future capital spending plans were also stronger.
Big picture: The headline index has been stuck in a range between 2 and 5 since July as manufacturing has been hit hard by weak business spending and a slowdown of international trade. Economists see signs that the sector is stabilizing. Investors look at the data mainly to get a sense of the national ISM index, which has been contracting for four straight months. The December ISM data won’t come out until early next year.
Market reaction: Stock futures were set to open higher Monday as investors cheered the U.S.-China trade truce. Last week, the Dow Jones Industrial Average DJIA, +0.01% saw a 0.4% advance to end at 28,135.
