ISM Shows Slowing Growth in Regional New York City Business Activity

The Institute for Supply Management (ISM) has a monthly Report on Business, but it also compiles some regional data that shows more focused views in certain regions. The ISM’s New York City focus showed that business conditions in 2016 were starting out with a downshift, expanding at the slowest pace in four months.

Tuesday’s ISM report noted that the slowing growth was amid more intense global financial market turbulence. Both New York Metro current and future indexes fell to four-month lows.

Current business conditions came in at 54.6 in January, down sharply from the 62.0 reading in December. This peaked at 68.8 last July. The six-month outlook printed at 63.3 in January, down sharply from the 70.7 reading in December. This peaked at 78.0 last June.

As a reminder, a reading of 50% means no change from the prior month. When readings are greater than 50% they indicate a faster pace of activity, and less than 50% indicates a slower rate.
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Company-specific job growth returned for the first time in five months, but weakness in purchase volume persisted for the fifth consecutive month. More specific sub-index levels were shown as follows:

• Employment rose to 56.9 in January.
• Quantity of purchases declined to 46.4 in January.
• Current revenues fell to 45.8 in January, the first contraction in three years and weakest reading in four years.
• Expected revenues were stuck in neutral at 50.0.
• Prices paid increased to 60.7 in January, the second time in the past three months the index was above the 60 level.