From the New York Federal Reserve:
The Empire State Manufacturing Survey indicates that conditions for New York manufacturers improved significantly in October. The general business conditions index climbed 16 points to 34.6, its highest level in five years. The new orders index rose 11 points, and the shipments index shot up 30 points, to 35.1. Both employment indexes were positive for the first time in more than a year. Price indexes were little changed, with the prices paid index remaining positive while the prices received index hovered just below zero. Future indexes advanced to relatively high levels, indicating that respondents expect conditions to improve further in the months ahead.
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Future indexes rose from the already high levels observed in September. The future general business conditions index climbed 3 points, to 55.7, and the new orders and shipments indexes advanced to similarly elevated levels. Future price indexes remained above zero, suggesting that both prices paid and prices received were expected to increase in the months ahead. The pace of input price increases was expected to slow, with the future prices paid index declining 12 points to 24.7, while the prices received index was little changed at 10.4. Employment was expected to rise over the next six months. Future employment indexes remained well above zero, with the future index for number of employees climbing 10 points to 18.8. The capital expenditures index rose 4 points, to 18.2, and the technology spending index advanced to 13.0.
I am particularly pleased with the employment readings in this report. This is the first in a series of Fed manufacturing reports. We'll have to wait and see if this trend continues in other regions.
