WASHINGTON – Factory activity in New York expanded in June, rebounding from a May decline as manufacturer orders and shipments rose.
The Federal Reserve Bank of New York said Wednesday that its Empire State manufacturing index rose to 6 in June, after slumping to minus 9 the previous month. Any reading above zero points to expansion.
The figures indicate that New York factories are seeing slight improvements in their outlook, although the employment gauge of the index shows that hiring has been flat. Factory output nationwide has been weak this year as sluggish economic growth worldwide has hurt demand for U.S. exports.
A measure of new orders rose to 10.9, from minus 5.5 the previous month. And a gauge of shipments also turned positive at 9.32, up from minus 1.9.
There are signs that factories have adjusted and started to recover from declines caused by cheaper oil prices, a struggling global economy and a dollar that until recently was strengthening in value.
The Institute for Supply Management says its manufacturing index showed expansion for the third straight month, rising to 51.3 in May from 50.8 in April. Any ISM reading above 50 signals growth.