The numbers: The New York Fed’s Empire State business conditions index, a gauge of manufacturing activity in the state, rose 21 points in September to 1.9, the regional Fed bank said Friday.
Economists had expected a negative 10 reading, according to a survey by the Wall Street Journal.
The gain reverses a 20.1 point drop in August. Any reading above zero indicates improving conditions.
Key details: The index for new orders jumped 25 points to 5.1 in September.
The shipments index also had a sharp increase, rising 24.7 points to 12.4.
Unfilled orders inched up 1.6 points negative 5.2, a sign that they continue to decline. Inventories declined again in September.
Labor market indicators pointed to a slight decline in employment levels and the average workweek.
Expectations for business conditions six months ahead rose 6.4 points to 26.3, the highest level in more than a year.
Big picture: The Empire State index has been volatile this year, twice falling below negative 30 before recovering.
Economists use the regional Fe data to get an early read on overall factory conditions in the country.
The ISM manufacturing index, a key gauge of the nation’s factory sector, has contracted for 10 straight months through August.
Market reaction: Stocks
DJIA
SPX
were set to open higher on Friday. The 10-year Treasury note yield
BX:TMUBMUSD10Y
rose to 4.32%.
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