Empire State manufacturing continues to struggle in November

The Empire State manufacturing index came in at -10.7 in November (previous: -11.4), below forecast (-5.0) and consensus expectations (-6.5) for a modest bounce from last month's reading. All indications point to a regional manufacturing sector that continues to struggle with the headwinds from a strong dollar, lower energy prices, and tepid foreign demand. New orders (-11.8, previous: -18.9) stayed in negative territory for the sixth consecutive month.

Production was weak as well, with the shipments index (-4.1, previous: -13.6) below zero for the fourth month running. The employment index showed little improvement (-7.3, previous: -8.5), and the average workweek (-14.6, previous: -7.6) registered the deepest contraction since 2011. The ISM-adjusted version of the headline index (47.0, previous: 46.3) stayed below 50 for the fifth month.

"This morning's survey shows little stabilization in northeast regional manufacturing sentiment. Thursday's release of the Philadelphia Fed index should reveal whether a broader section of the regional manufacturing base is experiencing the same contraction in activity", notes Barclays.