Empire State Manufacturing Sample Mixed

Empire State's sample is reporting improvement reflected in a better-than-expected 4.8 headline in a report that includes a solid snapback for new orders which are now back in positive ground at 6.7 for the first time since May. Shipments in the August report are also positive, extending their steady run at 9.3.

Other readings, however, are less favorable including a third straight contraction in the sample's employment at minus 1.6 in August and a third straight contraction in unfilled orders at minus 9.7. The 6-month outlook also softened, down 5.1 points to 25.7 which is moderate for this reading.

Yet the gain in new orders is of paramount importance and does speak to the strength seen in the Philadelphia Fed's report which was also released at 8:30 a.m. ET this morning. The factory sector, at least based on these two reports, is having a solid month so far in August.