Empire State factory index much better than expected

Business conditions in the New York region improved far more than expected in April, according to a survey from the New York Fed.

The Empire State manufacturing index rose nine points to a reading of 9.6, beating economists’ expectations of 3 and marking its highest level in over a year.

The new orders index edged up two points to 11.1, while the shipments index nudged down to 10.2 from 13.4 in March.

Finally, the index for further business conditions increased by four points to 29.4 – its third consecutive rise.

Pantheon Macroeconomics said the data showed "a startling improvement", signalling further ISM gains.

"The Empire State survey is a bit flaky, given its relatively small sample size and narrow geographic coverage, but a
28.9-point jump in just three months is hard to ignore."