By Xavier Fontdegloria
Business activity in New York's metropolitan area surged in December, data from a survey carried out by the New York chapter of the Institute for Supply Management showed Tuesday.
The ISM-New York Report on Business current business conditions stood at 61.3 in December, up 17.1 points and gaining back most of the loss reported in November.
Purchasing managers in the area reported increased activity in every index of the survey for the first time since May's report began the slow climb back from the peak of the Covid-19 pandemic's hit, the report said.
Following the sharp improvement in current business conditions, the six-month outlook index also grew in December to a 16-month high of 70.7 points. The indicator, which has been a reliable short-run guide for current business conditions over time, had been volatile during the last seven months, alternating between the 40 and 60 points.
"This may represent an end to the seven-month oscillation between the 40s and the 60s in this index or an expansion of it. January's finding will make the determination," the report said.
The purpose of the survey is to assess business conditions among firms in the New York City area. A reading of 50 means no change from the prior month, greater than 50 indicates a faster pace of activity, and less than 50 a slower rate.
As for the company specific indexes, the employment index was the largest mover in November's report and increased 26.6 points to 61.2 in December, reaching a 16-month high.
The quantity of purchases index rose to 61.5, a 20-month high. The reading goes hand in hand with the increase seen in employment, as most of the survey respondents work in the services industry.
Both current and expected revenue rose in December, to 57.7 and 58.3 points, respectively.
The prices paid index rose marginally to 65.4 in December from 65.0 the previous month, ISM said.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
01-05-21 0959ET
