New York Manufacturing Index Rises

New York, NY, October 15, 2007--Manufacturing in New York unexpectedly increased in October, reaching the highest level in three years, as orders and sales gained.

The New York Federal Reserve Bank's general economic index rose to 28.8, the highest since July 2004, and up from 14.7 in September, the bank's Buffalo branch said today. Readings above zero signal expansion.

Economists were expecting a drop to 13.1.

The index measuring the manufacturing outlook for the next six months rose to 50.6, the highest since August 2005, from 48.8 in September, today's report showed.

The measure of new orders climbed to 25 from 13.6 in September.

A gauge of shipments increased to 28.6 from 5.1, the report showed. The index of inventories rose to 3.5 from 3.2.

Increasing demand for overseas exports is helping to keep factories running. Exports climbed to a record for

The index of prices paid for raw materials increased to 36.1 this month from 35.1 in September. A measure of prices received rose to 15.1 from 11.7, which had been the highest since February.