Empire State Factory Index Points to Rapidly Improving Economy

Business conditions improved at a “solid clip” in recent week,  the New York Fed said Tuesday in its monthly “Empire State” manufacturing report.

The New York Fed’s business conditions index jumped 13.3 points to 17 in September. Economists had expected the index to rise from last month’s 3.7 to 6.5, according to a survey by Econoday.

This is the third consecutive positive result for the index. Scores above zero indicate improving conditions.

This is the highest reading since May of 2019, above the prepandemic February reading of 12.9.

The new-orders index turned positive, climbing 8.8 points to 7.1 in September.  The shipment component of the index rose  7.4 points to 14.1.

The index for number of employees held steady but the average workweek, which had been negative in Augusts, rose 13.5 points to 6.7.

The expectations component, which measures the outlook for six-months from now, rose 6 points to 40.3.