A report released by the Federal Reserve Bank of New York on Monday showed the pace of growth in New York manufacturing activity accelerated by more than anticipated in the month of October.
The New York Fed said its general business conditions index rose to 21.1 in October from 19.0 in September, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to inch up to 20.0.
The bigger than expected increase by the headline index partly reflected a significant acceleration in the pace of shipment growth, as the shipments index surged up to 26.3 in October from 14.3 in September.
New orders growth also showed a notable acceleration compared to the previous month, with the new orders index jumping to 22.5 in October from 16.5 in September.
Meanwhile, the report said the number of employees index fell to 9.0 in October from 13.3 in September, indicating a slowdown in the pace of job growth.
The prices received index also slipped to 14.3 in October from 16.3 in September, while the prices paid index dropped to 42.0 from 46.3.
Looking ahead, the New York Fed said firms generally remained optimistic about the six-month outlook, although the index for future business conditions edged down to 29.0 in October from 30.3 in September.
The Federal Reserve Bank of Philadelphia is scheduled to release a separate report on regional manufacturing activity on Thursday. The Philly Fed index is expected to dip to 20.0 in October from 22.9 in September.