Empire State Manufacturing Report Shows Modest Growth

Released one day early by accident, the New York Federal Reserve's Empire State report came in at a modest plus 4.0 in October versus Econoday's consensus for an even more subdued plus 0.8. October's score is among the lowest of the last 2-1/2 years.

New orders held steady at a modest 3.5 though employment rose 2.4 points to 14.5 with shipments also showing life, up 7.2 points to 13.0. Yet neither employment nor shipments look to build much momentum given not only the modest pace for new orders but also sharp contraction in backlogs which, extending a long run of contraction, are at minus 12.5.

The six-month outlook remains subdued while price readings show slightly less pressure, rounding out a flat report that isn't helping the outlook for a factory sector that, due to slowing global growth, is limping into year end.