U.S. economy watchers got more good news today, with reports showing that manufacturing conditions continue to improve.

The New York Federal Reserve reported that manufacturing activity improved substantially in November, the seventh straight month of upbeat readings. The Empire State Manufacturing Survey that its general business-conditions index shot up to 41.01, a second straight monthly record, from 34.11 in October.

Analysts were calling for a decline in the index to 28.0 from an upwardly revised 34.1 last month.

RBC Financial notes that this marks the third consecutive increase in the index and underscores the momentum of the current recovery. New orders and shipments also posted new records, rising to 41.4 and 37.6, respectively. The unfilled orders index dipped 4.6 points to 1.6, while the inventories index registered its first positive reading since February, rising to a modest 1.7.

On the employment front, both indices came in positive again for the second month in a row, RBC reports, “providing further proof of a firming labour market”.

In a separate release, the U.S. Commerce Department reported that American businesses boosted their stockpiles of goods for the first time in six months, in September.

Inventories increased 0.3% in September to $1.18 trillion, following a 0.4% decline in August. September’s rise was the first since March, when businesses also increased their supplies at warehouses and backlots by 0.3%.

RBC says that markets were calling for a flat reading. “Inventory levels at retailers contributed mostly to the upside surprise, rising 1% over the month and largely on the back of inventory increases in building materials, garden equipment and supplies, as well as motor vehicle and parts, the latter reversing some of the large rundown seen last month.” RBC notes.