A report released by the Federal Reserve Bank of New York on Monday said manufacturing firms in New York reported that business activity continued to expand strongly in the month of October.
The New York Fed said its general business conditions index climbed to 30.2 in October from 24.4 in September, with a positive reading indicating growth in regional manufacturing activity.
The increase came as a surprise to economists, who had expected the New York manufacturing index to drop to 20.7.
With the unexpected increase, the New York manufacturing index reached its highest level since a matching reading in September of 2014.
The unexpected increase by the headline index was partly due to a notable acceleration in shipment growth, as the shipments index jumped to 27.5 in October from 16.2 in September.
The number of employees index also rose to 15.6 in October from 10.6 in September, indicating faster job growth in the New York manufacturing sector.
On the other hand, the report said the new orders index dropped to 18.0 in October from 24.9 in September, suggesting a slowdown in the pace of growth in new orders.
The prices paid index also slid to 27.3 in October from 35.8 in September, while the prices received index fell to 7.0 from 13.8.
Looking ahead, indexes assessing the six-month outlook suggested that firms continued to be optimistic about future conditions.
The New York Fed said the index for future business conditions climbed to 44.8 in October from 39.3 in the previous month.
On Thursday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity. The Philly Fed Index is expected to dip to 20.2 in October from 23.8 in September.
by RTT Staff Writer
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