December 2020 ISM-New York Report on Business: Starting 2021 with Lofty Expectations
Every index reporting above the breakeven point
NEW YORK, Jan. 5, 2021 /PRNewswire/ -- In December, New York City purchasing managers reported increased activity in every index for the first time since beginning to climb back from the pandemic's peak impact in May, according to the survey taken by the Institute for Supply Management-New York.
"Although this month's indices are directionally positive, we need to be careful how much we read into them," said Kelly Barner, ISM-New York's Business Survey Chair and Owner of Buyers Meeting Point. "What we're actually seeing is continued uncertainty – albeit with a positive spin."
New York Metro
Current Business Conditions increased by 17.1 points to 61.3, gaining back most of the 20.9 point drop to 44.2 reported in November.
The Six-Month Outlook recovered from the fall seen in November. December's outlook reached a 16-month high of 70.7, referencing 71.4 in August 2019. This may represent an end to the 7-month oscillation between the 40s and the 60s in this index or an expansion of it. January's finding will make the determination. The six-month outlook has been a reliable short-run guide for current business conditions over time.
Company Specific
Employment, a seasonally adjusted index, was the largest mover for the second month in a row. Employment increased 26.6 points to 61.2 in December, up from the 5-month low of 34.6 in November. This is a 16-month high, referencing 69.0 in August 2019.
Quantity of Purchases rose to a 20-month high of 61.5 in December, up from a 6-month low of 40.0 in November (referencing 63.6 in April 2019). This goes hand in hand with the increase seen in Employment, as most of the survey respondents work in service industries.
Top line and forward revenue guidance increased in December. Current Revenues rose to 57.7, reaching a 10-month high. Expected Revenues increased to 58.3, a 10.8-point gain over November.
Prices Paid adjusted from 65.0 in November to 65.4 in December.
About the ISM-New York Report on Business
The survey results are compiled as diffusion indices. 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.
Current Business Conditions, Six-Month outlook, NY-BCI, and the Employment index are seasonally adjusted. All other measures are not. For more information visit http://www.ismny.com/reports-on-business/
SOURCE Buyers Meeting Point, LLC
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