Empire Manufacturing Strong, Prices Paid Down 49.1% in 6 Months

- The Empire Manufacturing Index for October rose to 22.9 versus a reading of 11.2 in September.

BOTTOM LINE: Manufacturing in NY state unexpectedly accelerated this month as costs of energy and raw materials eased and shipments increased, Bloomberg said. Manufacturers are investing rising profits in new equipment and re-building inventories to meet strong demand. The prices paid component of the fell to 30.8 versus a reading of 41 in September. The employment component of the index rose to 19.4 versus 12.5 in September. I continue to believe manufacturing will remain relatively healthy over the intermediate-term as companies gain confidence in the sustainability of the current expansion.