A gauge of manufacturing in New York jumped to its highest level in three years this month, a reading that should bolster the Federal Reserve’s case for another rate increase this year.
The Empire State Manufacturing Survey rose to 30.2 in October, up from the 24.4 recorded the previous month, the New York Federal Reserve said on Monday. That handily beat economists’ expectations for a drop to 22 and is the strongest reading since September 2014.
Although the new orders index fell to 18, compared to the 24.9 in September, the shipments index rose more than 11 points to 27.5 during the period.
The new orders index came in at 18 and the shipments index rose eleven points to 27.5—readings that pointed to ongoing solid gains in orders and shipments.
“Indexes assessing the six-month outlook suggested that firms remained optimistic about future condition,” the survey noted.
The data are the latest piece of upbeat economic news to come out on the US economy in recent weeks. Inflation, industrial production and retail sales have all received a boost in the wake of the devastating hurricanes that struck the US.
Both the dollar and US stock futures edged higher on the news. The dollar index is up 0.1 per cent at 93.2 while futures for the Nasdaq 100 rose 0.2 per cent. Futures for the Dow Jones Industrial Average and the S&P 500 were 0.1 per cent higher.