Empire State index bounds past forecasts in September

Manufacturing activity in the jurisdiction of the Federal Reserve Bank of New York surged in September, according to the results of a closely-followed survey.

The New York Fed's regional factory index jumped from a reading of 18.3 for August to 34.3 in September, roughly doubling economists' forecasts for a print of 17.1.

A key sub-index for new orders also soared, rising from 14.8 to 33.7.

However, the sub-index for delivery times increased from 28.3 to 36.5 - a record high - denoting tightness on the supply side, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

The gauge for prices received also hit a new high, another reflection of "severe" supply side disruptions.

Nevertheless, those disruptions were no longer deteriorating at an accelerating pace, he explained.

Gauges linked to staffing levels and the length of the average work week did improve alongside.

Even so, Shepherdson believed that either region-specific factors were supporting the headline index or it set to soon fall rapidly.