Empire State Manufacturing Index

From Forexpedia

Definition

The Empire State Manufacturing Index (ESMI) is a survey given out by the Federal Reserve Bank of New York to manufacturing companies within the state of New York. Basically, it measures how the people who run these companies feel towards the economy. The most watched statistic of the report is the business confidence index as it provides the general sentiment of the manufacturing industry’s participants on the economy. The index also includes components that focus on such things like employment and sales. It is an indicator of the economy as it takes into account past, present and future sentiment on the economy. The base score is zero, meaning that any score below 0 means that business sentiment is getting worse while scores above 0 indicate an improving outlook.

The ESMI is released near the middle of the month and may give a clue as to what the ISM Manufacturing Index results will be. People look at this report as it helps give an idea of how businesses are doing. If the score is high (above 0 or better than expected), it can mean that the economy is booming or, if the economy is in a recession, mean that the recession is slowing down.