Empire State Factory Sector Report Shows Enormous Strength

Enormous strength is Empire State's indication for the June factory sector, at a headline index of 25.0 that easily tops Econoday's consensus range. Both new orders, up more than 5 points to 21.3, and backlog orders, up more than 4 points to 9.3, are pointing to rising activity in the months ahead.

And activity is already at a very strong pitch with shipments up more than 4 points to 23.5, employment up more than 10 points to 19.0, and the average workweek up nearly a point to 12. Delivery delays are routine and selling prices are going up, both indications of very strong demand.

The factory sector, where orders are rising at a roughly double-digit pace, is the economy's hottest sector. Yet coming up later this morning is industrial production where the manufacturing numbers have been less positive.