Highlights The manufacturing sector in the area of New York state has been contracting stea dily since

August. The general business conditions index of the Empire State rep ort fell to minus 8.10 for the December reading vs minus 5.22 and minus 6.16 in the prior two months. This report has shown no effect from the landfall of Hurri cane Sandy or the aftermath. The report for December is filled with negatives th at include contraction for new orders, unfilled orders, and employment. The 12-m onth outlook is still positive but is far from robust. Last week's PMI flash report, which is a national report, got out ahead of the r egional reports this month. The flash report was very strong and contrasts with the continued weakness in this report, which of course is confined to only one a rea of the country. On Thursday, the regional manufacturing report from the Phil ly area will be posted and it, like the Empire State report, has been much weake r than national reports.