The Empire State Manufacturing Survey general business-conditions index rose 13 points to 4.3 to emerge from negative territory in July.
The general business-conditions index had plummeted 26 points to -8.6 in June, representing its “largest monthly decline on record.”
The July reading, based on firms responding to the survey, indicates “business activity rebounded modestly in New York,” the New York Fed said in its Monday report.
A positive index number indicates expansion or growth in manufacturing activity, while a negative reading points to a decline in the sector.
The survey found 30 percent of respondents reported that conditions had improved over the month, while 26 percent said that conditions had worsened, the New York Fed said.
New orders were little changed, and shipments increased, the New York Fed said.
Unfilled orders and inventories continued to move lower, while delivery times were longer. The employment index remained negative, falling to its lowest level in nearly three years.
Input price increases continued to “moderate somewhat,” while the pace of selling price increases remained “modest.”
Indexes assessing the six-month outlook indicated that firms were “fairly optimistic” about future conditions.
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.
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VISUAL CREDIT: Federal Reserve Bank of New York website