Surge in Empire State Manufacturing Index surpasses expectations

The Federal Reserve Bank of New York’s Empire State Manufacturing Index has significantly outperformed expectations, rising to 18.7 from a prior reading of 10.7 and well above the 6.1 forecast. A figure above zero indicates improving conditions, and this latest surge suggests New York’s manufacturing sector is gaining momentum. The index, derived from a monthly survey of around 200 manufacturers across the state, is a closely watched economic gauge. The stronger-than-expected result is also seen as supportive for the U.S. dollar, as upbeat manufacturing data typically bolsters sentiment around economic growth and monetary policy prospects.