The July Empire Manufacturing report was much stronger than expected.
The headline index unexpectedly jumped to 25.60 in July from 19.28 in June.
According to the New York Fed, this is the highest level in over four years.
Economists estimated the number would decline to 17.0.
From the NY Fed:
The new orders index was little changed at 18.8, while the shipments index rose nine points to 23.6; both indexes were at multiyear highs. The unfilled orders index fell six points to -6.8. The indexes for both prices paid and prices received were higher this month, indicating a pickup in the pace of price increases. Labour market conditions continued to improve, with indexes pointing to a solid increase in employment levels and a slight increase in hours worked. Although many of the indexes for the six-month outlook were significantly lower, conditions overall were expected to continue improving in the months ahead.
“The Empire State survey has generally appeared consistent with the rebound in growth and rebuilding of inventories that we see for Q2: its average level of 13.2 was the highest since Q1 12,” said UBS’s Sam Coffin.