New York Factory Activity Surged In October, Jobs & Orders Jump

Amid the desert of macro data due to the shutdown, traders are reaching for anything to get a sense of the US economy and this morning’s Empire State Fed Manufacturing Survey offers hope for the future.

Specifically, the New York state factory activity unexpectedly expanded and the outlook climbed to the highest since the start of the year despite lingering price pressures.

October general business conditions index increased 19.4 points to 10.7 (its 3rd increase in the last 4 months) as orders and shipments picked up, and a gauge of the outlook over the next six months more than doubled to 30.3, reflecting greater optimism about orders and shipments.

Source: Bloomberg

Under the hood, the report showed a gauge of prices paid for materials rose, while a measure of prices received by state manufacturers increased to a six-month high. Additionally, there was growth in orders and shipments and a gauge of factory employment showed the fastest expansion in three months.

Source: Bloomberg

“Optimism about the outlook improved noticeably,”said Richard Deitz, Economic Research Advisor at the New York Fed.