A report released by the Federal Reserve Bank of New York on Tuesday showed a significant acceleration in the pace of growth in regional manufacturing activity in the month of September.
The New York Fed said its general business conditions index jumped to 17.0 in September from 3.7 in August, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to 6.0.
The sharp increase by the headline index partly reflected a turnaround by new orders, as the new orders index surged up to a positive 7.1 in September from a negative 1.7 in August.
The report also showed a notable acceleration in the pace of shipment growth, with the shipments index climbing to 14.1 in September from 6.7 in August.
The number of employees index also inched up to 2.6 in September from 2.4 in August, indicating modest job growth.
On the inflation front, the prices paid index also jumped to 25.2 in September from 16.0 in August, while the prices received index rose to 6.5 from 4.7.
The New York Fed also said firms remained optimistic that conditions would improve over the next six months, with the index for future business conditions climbing to 40.3 in September from 34.3 in August.
On Thursday, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity. The Philly Fed Index is expected to dip to 15.0 in September from 17.2 in August.