Reply #24: New York City economy weakens in January - NY-NAPM [View All]

[UpInArms]

http://www.reuters.com/article/bondsNews/idUSN3130804020080131

NEW YORK, Jan 31 (Reuters) - Business activity in New York City contracted for the first time in four months in January on growing pessimism spurred by recession fears and market turmoil, according to an industry report released on Thursday.

New York City's economy is particularly sensitive to turbulence in the stock market, given its reliance on Wall Street and the banking industry.

The National Association of Purchasing Management-New York said on its Web site that its index of local business activity fell to 431.0 from a downwardly revised 432.1 in December.

The December reading was originally reported at 449.1.

"Survey participants specifically mentioned recession, soft demand, weak retail environment, decline in consumer discretionary spending and market downturn as concerns," the business group said of the data compiled from its members.

The survey's seasonally adjusted measure on current business conditions slumped to 47.9 from December's upwardly adjusted 63.9. A figure below 50 means a contraction in activity.

The survey's six-month outlook gauge sagged to 44.2, its lowest since November 2005, from 58.7 in December.

...more...