The report from the New York Federal Reserve showed on Tuesday that manufacturing activity in the New York region expanded at a solid pace in early September.

According to the survey, NY Fed Empire State manufacturing index rose from 3.7 in August to 17.0 in September.

Economists had expected the index to come in at 6.0.

Anything below zero signals contraction.

According to the report, the new orders index increased nine points to 7.1, pointing to a modest advance in orders, and the shipments index rose seven points to 14.1, indicating a significant gain in shipments. Meanwhile, the employment index held steady at 2.6, indicating little change in employment levels. Elsewhere, unfilled orders and inventories continued to decline, and delivery times were somewhat longer. On the price front, the prices paid index climbed nine points to 25.2, pointing to a pickup in input price increases, while the prices received index edged up to 6.5, its highest level since March, indicating that selling prices rose for the second consecutive month.