Empire State Manufacturing Jumps to Five-Year High

Manufacturing activity in the New York region was stronger than expected in June, the New York Federal Reserve said Thursday.

The Empire State diffusion index of current general activity increased from a reading of 14.69 in August to 27.54 this month. The index is at its highest reading since October 2009.

Economists polled by Bloomberg had expected a reading of 16.0 this month. A reading above zero indicates expansion.

New orders rose to 16.86 from 14.14, while inventories continued to shrink, although at a slower pace, registering a reading of -7.61 versus August`s -14.77.

The pace of growth in employment gauges slowed, with the index for the number of employees down to 3.26 from 13.64, while the average employee workweek index slipped to 3.26 from 7.95.

The index of business conditions six months ahead was little changed, clocking in at 46.72 compared with 46.76 in August, which had been the highest in 2-1/2 years.

The survey of manufacturing plants in the state is one of the earliest monthly guideposts to U.S. factory conditions.