The Empire State Manufacturing Survey indicates that conditions improved in October for New York State manufacturers. The general business conditions index rose 12 points, to 15.7. New orders jumped to 13 suggesting the index will remain strong the rest of the year. Especially considering that inventories plunged to -11.7 suggesting that corporations were caught off guard with a rebound in the economy during September. The increase in employment coincides with the better employment numbers seen since the beginning of September as well.
All in all a very solid report that suggests the economy is pulling out of the fog from the summer. The index is now signaling strong growth in manufacturing has returned. The only question is whether profit margins are beginning to be squeezed with employment hitting 21 and now above the general conditions. If employment continues hotter then general business conditions, corporations might face costs growing faster then revenue. Something to watch.