New York Manufacturing Index Indicates Rebound In June

After reporting a contraction in regional manufacturing activity in the previous month, the Federal Reserve Bank of New York released a report on Thursday showing a rebound in activity in the month of June.

The New York Fed said its general business conditions index shot up to 19.8 in June from a negative 1.0 in May, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to rise to 4.0.

The bigger than expected increase by the headline index came amid a rebound in new orders, as the new orders index jumped to 18.1 in June from a negative 4.4 in May.

The report also said the shipments index climbed to 22.3 in June from 10.6 in May, with the increase indicating faster growth.

Meanwhile, the New York Fed said the number of employees index dropped to 7.7 in June from 11.9 in the previous month.

The prices paid index also edged down to 20.0 in June from 20.9 in May, while the prices received index rose to 10.8 from 4.5.

Looking ahead, the New York Fed said the index for future conditions inched up to 41.7 in June from 39.3 in the May.