-->The Empire State Index for October slipped back for a second month in the wake of hurricanes Katrina and Rita, down to 12.1 vs. 15.6 in September. But the report, like other information coming out of the manufacturing sector, is mixed as it includes a sharp increase in new orders to 24.9 vs.11.6, a gain that points to overall strength in future reports.

Price increases are one area that all data are confirming as higher as this component rose to 57.3 vs. 53.9 in the previous month. Price increases are due to both to disruptions tied to the hurricanes and greater demand as manufacturers bulked up supplies on concerns of shortages. Next up will be the Philadelphia Fed report on Thursday, which typically has a greater market impact than the Empire.