New York manufacturing index surges back into positive territory in April

A chart showing month-to-month activity on the Empire State Manufacturing Survey. (Visual credit: Federal Reserve Bank of New York)

The Empire State Manufacturing Survey general business-conditions index soared in April, rising 36 points to 24.6, indicating a return to expansionary business conditions in the sector.

The index — the monthly gauge of New York’s manufacturing industry — had declined nearly 15 points in March to -11.8.

The April reading — based on firms responding to the survey — indicates business activity “picked up significantly” in New York, the Federal Reserve Bank of New York said in its Friday report. A positive reading indicates expansion or growth in manufacturing activity, while a negative index number points to a decline in the sector.

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The survey found 40 percent of New York manufacturer respondents reported that conditions had improved over the month, while 15 percent said conditions had worsened, 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 state. On average, about 100 executives return responses.

Eric Reinhardt: