Empire State manufacturing index smashes expectations

Business conditions in the New York region improved a lot more than expected in February, with the index for the region hitting its highest level in more than two years.

The Empire State manufacturing index rose to 18.7 from 6.5 the month before, smashing expectations for a reading of 7.0.

The new orders index rose to 13.5, while the shipments index advanced to 18.2, pointing to substantial increases in both orders and shipments.

Labour market conditions improved, with both employment and hours worked moving higher.

Meanwhile, the index for future business conditions dropped eight points, but at 41.7, remained high by historical standards.