Business activity in New York City made a huge comeback in October.
The ISM New York index for October came in at 65.8.
Economists had estimated that the index rose to 45.7 from 44.5 in the prior month, when it contracted for the first time in eight months.
Most respondents said domestic demand represented the biggest business opportunity as opposed to an impediment. The cost of employees (labour and benefits) and inflation were reported as the three biggest obstacles.
The report provides more colour on American manufacturing and overall business activity from one of the country’s most important cities.
On Monday, ISM’s national manufacturing PMI came in at 50.1, missing contractionary territory by 0.2 points. Some economists though this meant the worst may be over for manufacturing.
But the report from the index from the New York Fed on manufacturing in the region has been in contraction for the last few months, and fell to the lowest since 2009 in August.
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