New York manufacturing index soars in June to highest level in nearly three years

The Empire State Manufacturing Survey general business-conditions index rose 21 points in June to 19.8, its highest mark since September 2014.

The index had declined significantly in each of the last two months, culminating with its fall into negative territory in May.

A positive reading indicates expansion or growth in manufacturing activity, while a negative reading on the index points to a decline in the sector.

The results of the June survey indicate that business activity “rebounded strongly” for New York manufacturers, the Federal Reserve Bank of New York said in a news release issued Thursday.

The survey found that 36 percent of manufacturer respondents reported that conditions had improved over the month, while 16 percent said that conditions had worsened.

Survey details

The new-orders index posted a similar increase to the general business-conditions index — rising 23 points to 18.1. The shipments index also advanced.

The inventories index climbed to 7.7, indicating a rise in inventory levels.

Labor-market indicators pointed to a “modest” increase in employment and hours worked.

The pace of input price increases was “unchanged,” while selling-price increases “picked up somewhat.”

Looking ahead, firms remained optimistic about the six-month outlook.

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.

Contact Reinhardt at ereinhardt@cnybj.com