The Empire State Manufacturing Survey general business-conditions index climbed almost back to even in June after posting record lows in the prior two months.
The benchmark index of the survey by the Federal Reserve Bank of New York jumped 48 points to -0.2. The index was at -48.5 in May and -78.2 in April, the two lowest levels in the survey’s history.
The June reading, based on firms responding to the survey between June 2 and June 9, indicates business activity “steadied” in New York, the New York Fed said in the Monday report.
A negative reading on the index indicates a decline in the sector, while a positive number points to expansion or growth in manufacturing activity.
The survey found 36 percent of respondents reported that conditions had improved over the month, while 36 percent indicated that conditions had worsened, the New York Fed said.
Firms were “notably more optimistic” that conditions would be better in six months, with the index for future business conditions rising to its highest level in more than a decade, the New York Fed said.
The New York Fed distributes the Empire State Manufacturing Survey on the first day of each month to the same pool of about 200 manufacturing executives in New York. On average, about 100 executives return responses.
Photo credit: Federal Reserve Bank of New York website