Empire Manufacturing Surges, Employment Component Best on Record

- The Empire Manufacturing Index rose to 26.7 versus estimates of 15.0 and a reading of 22.9 in October.

BOTTOM LINE: Manufacturing in New York state unexpectedly surged in November to the fastest pace in five months, Bloomberg reported. Business spending on new equipment kept factories humming. The index measuring the outlook for the next six months jumped to 37.8 from 30.2 the prior month. The new orders component of the index rose to 22.4 from 11.8 the prior month, the largest increase in more than a year. The prices paid index rose to 34.9 from 30.8 in October. The employment component of the index surged to 24.5, the highest since record keeping began in 1997, from 19.4 the prior month. I expect overall manufacturing to strengthen over the intermediate-term as auto production cuts subside and companies gain confidence in the sustainability of the current expansion.