(Bloomberg) -- New York state manufacturers reported stronger growth in orders and shipments in October, allowing a gauge of business activity to expand at a solid, albeit somewhat slower, pace and indicating momentum is carrying over into the fourth quarter.
The Federal Reserve Bank of New York's general business conditions index decreased to 10.5 after jumping a month earlier to 17 that was the second-highest since 2018, a report out Thursday showed. It marked the fourth month of expansion and compared with a median projection in a Bloomberg survey of economists for a reading of 14.
Readings above zero indicates expansion, and New York Fed bank's index of new orders rose to 12.3 from 7.1, while the shipments measure increased to 17.8 from 14.1 -- both three-month highs. Increased bookings and stronger sales encouraged manufacturers to boost hiring and hours worked during the month.
The Fed bank's employment gauge climbed to 7.2, the highest since January, while a measure of the average employee workweek jumped to 16.1 -- the strongest reading since May 2011, from 6.7 a month earlier.
Production gains will probably be sustained as the state's factories said inventories contracted at the fastest pace since November 2016.
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