The Empire Manufacturing Index, which highlights manufacturing activity in the New York region, came in at -0.70, down sharply from 31.9 in December and well beneath expectations of 25.5. Within the report, demand for goods waned. The New Orders index was -5, down big from 27.1 in December. Most firms were generally optimistic about the six-month outlook.
Ongoing inflation pressures along with supply-side disruptions weighed on home builder sentiment this month despite consumer demand remaining high. The NAHB Housing Market Index slipped to 83 in January from 84 in December hovering near current levels for the past few months. Any number over 50 indicates that more builders view conditions as good than poor. Current sales conditions were unchanged, sales expectations in the next six months declined slightly while the charting traffic component of prospective buyers also slipped. NAHB Chief Economist Robert Dietz said, “While lean existing home inventory and solid buyer demand are supporting the need for new construction, the combination of ongoing increases for building materials, worsening skilled labor shortages and higher mortgage rates point to declines for housing affordability in 2022.”
Manufacturing activity slips in NY. Looking ahead, firms still optimistic. Home builder sentiment slips.
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