General business conditions in New York showed a sharp rebound in June, the Federal Reserve Bank of New York’s Empire State Manufacturing Survey shows.
Manufacturing firms reported business activity grew at a solid clip in June. The general business conditions index skyrocketed 21 points to 19.8, its highest level in more than two years. Thirty-six percent of respondents reported better conditions this month, up from 26 percent in May.
The new orders index posted a similar increase, rising 23 points to 18.1, while the shipments index increased to 22.3. The inventories index climbed to 7.7, indicating a rise in inventory levels, and labor market indicators pointed to a modest increase in employment and hours worked.
Looking ahead, manufacturing firms continue to expect conditions to improve. The index for future business conditions was roughly flat at 41.7, while the index for future new orders rose nine points to 42.2.
Businesses expect inventories to be slightly lower in the coming months, and employment is expected to increase modestly. The capital expenditures index rose to 20.8, and the technology
spending index was 11.5 in June.
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