Washington, DC, November 15, 2006--Business conditions for manufacturers in the New York region improved in November, with the Empire State index rising by about four points to a five-month high of 26.7, the New York Federal Reserve Bank reported Wednesday.
The diffusion index improved for a third straight month, confounding economists who had expected a decline to about 15.4 in November from 22.9 in October.
Following a surprising decline in last month's national diffusion index produced by the Institute of Supply Management, economists have been on the lookout for further signs of a slowing in the factory sector.
Readings over zero indicate conditions are favorable for most firms in the region. In November, 41% of manufacturers said business was better in November, while 14% said conditions worsened.
The New York Fed's indexes for new orders, shipments, unfilled orders and employees all improved in November, as did the long-term outlook.
Specifically, the new orders index rose to 22.4 from 11.8, while the shipments index increased to 26.6 from 22.5 and the unfilled orders index improved to a reading of 10.2 from negative 1.5 in October.
The employee index rose to 24.5 from 19.4, marking the highest in more than a year.
The prices paid index increased to 34.9 from 30.8, while the prices received index fell to 17.0 from 17.5.
The future business conditions index improved to 37.8 from 30.2, with 51% of firms expecting business to get better in the next six months.
