Empire State manufacturing index unexpectedly rises

(Sharecast News) - Manufacturing activity across New York State unexpectedly rose in October, marking its third increase over the past four months, according to a monthly report on sector conditions conducted by the Federal Reserve Bank of New York. The Empire State Manufacturing Survey's headline general business conditions index climbed 19 points to 10.7, up from -8.7 in September and comfortably ahead of the -1.0 reading pencilled in by economists.

The new orders index rose to 3.7 from -19.6, while the shipments measures jumped to 14.4 from -17.3.

Inventories were little changed, while delivery times lengthened and the supply availability worsened. However, firms grew more optimistic about the outlook, with nearly half expecting conditions to improve in the coming months.

"Price increases picked up and are expected to pick up further in the months ahead. Optimism about the outlook improved noticeably," said Richard Deitz, economic research advisor at the New York Fed.