New York manufacturing continues shrinking

NEW YORK - Manufacturing activity in the New York region continued to decline at a modest pace in December for the fifth consecutive month, according to a report released Monday by the Federal Reserve Bank of New York.

The Empire State Index fell 3 points from the previous month to minus 8.1 in December, failing to match with analysts' expectation of a positive result.

Sub-indexes of the report were also weak. The new order index dropped to minus 3.7 after returning to positive territory in November and shipments index declined 6 points to 8.8.

Moreover, the employment indexes pointed to weaker labor market conditions, with the index for the number of employees below zero for a second straight month.

The Empire State Index closely watches manufacturing activity in New York, northern New Jersey and southern Connecticut. The New York Fed conducts this survey monthly and participants represent a variety of industries. Readings below zero signal contraction.

Manufacturing sector accounts for about 12 percent of U.S. economy.