According to a report from the New York Federal Reserve, the Empire State Manufacturing Survey rose to 18.7 in November, up from 10.7 in October. This figure far exceeded expectations when economists forecast 6.1.
New York's manufacturing activity has risen to a one-year high and marked the fourth time positive data has been recorded in recent years.
Richard Deitz - Economic Research Advisor of the New York FED - said in the report: "Making activities in New York state grew steadily, with the survey's key index reaching its highest level since November last year. Both the number of jobs and working hours have increased slightly. Although businesses expect conditions to improve, the level of optimism about the future has decreased".
The gold market did not record a strong reaction to better-than-expected economic data. However, the precious metal continues to struggle to regain momentum as investors take profits after prices failed to hold above $4,200/ounce last week.
In addition, the report also showed widespread improvements in the index's components, with increases in the labor market and reduced inflationary pressures. The new order index rose to 15.9 from the previous 3.9; while the shipment index rose to 16.8 from 14.4 in October.
The labor market in the region improved when the employee count index increased to 6.6 from 6.2 last month.
Finally, inflationary pressures showed signs of cooling down, with the input price index falling to 49.0 from the previous 52.4.
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