Investing.com - The Empire State manufacturing index fell in December, to a reading of 10.90 from 23.30 in November, the New York Fed reported on Monday.
The consensus forecast had been for a reading of 20.10.
Any reading above zero indicates improving conditions, below indicates worsening conditions.
"Manufacturing firms in New York State reported that business activity continued to expand, though growth was noticeably slower than in recent months," the NY Fed commented in the report.
The report indicated that new orders increased modestly, while shipments continued to climb significantly.
Delivery times lengthened slightly, and inventories moved higher.
The employment index rose 12 points to 26.1, indicating that employment grew strongly, and hours worked increased modestly.
The prices paid index, while still elevated, moved down five points, and the prices received index held steady.
“Looking ahead, firms remained fairly optimistic about the six-month outlook, though optimism was slightly more tempered than in November,” the NY Fed said.