Empire State Manufacturing Sample Rises

The heat isn't letting up at all for Empire State's manufacturing sample where the general conditions index rose 3 points to a 25.6 August score that easily exceeds Econoday's top estimate for 22.0.

New orders continue to pour in, at 17.1 in August with unfilled orders at 11.1 which for this reading is unusually strong. Delivery times are lengthening sharply in a sign of capacity stress but they are not holding down shipments which jumped more than 11 points to 25.7. Employment is strong at 13.1 with the workweek rising 3.3 points to 8.9. And six-month confidence, which had turned lower in this report following the imposition of steel and aluminum tariffs, is on the mend. Price readings remain elevated, especially for input costs but also for selling prices.

This sample is enjoying a very good year. Watch tomorrow for the manufacturing report from the Philadelphia Fed where another strong report is the expectation.