Empire State Manufacturing Index rises in January

The Empire Manufacturing Index rose in January which is a good sign for businesses.

The manufacturing industry in New York got a boost of confidence as the Empire State Manufacturing Survey showed business activity improved in January. The survey, which was released on Jan. 15, is an indicator for how business will be in the New York area and an early predictor for the industry as a whole. The survey, which is conducted by the Federal Reserve Bank of New York, showed the general business index rose to 12.5 in January. This a major increase from the 2.2 index in December.

The January reading is the highest since May 2012, the survey said. Bricklin Dwyer, an economist at BNP Paribas, said in a statement this jump in the index is a sign of good things to come.

"This is the first signal in terms of manufacturing confidence for January and shows steady optimism in manufacturing activity that is consistent with the modest level of manufacturing output we have seen lately," Dwyer said.

Along with an overall increase, several subindexes also showed improvements. The employment index, which was zero in December, rose to 12.2. The new orders index, which is a signal that companies will demand more labor, increased to 10.98 for January. Businesses who will need help to meet order demands can look to manufacturing recruiters to help them fill new positions.

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