WASHINGTON (dpa-AFX) - The Federal Reserve Bank of New York released a report on Friday showing regional manufacturing activity unexpectedly grew at a faster rate in the month of August.
The New York Fed said its general business conditions index climbed to 11.9 in August from 5.5 in July, with a positive reading indicating growth. Economists had expected the index to fall to 0.5.
With the unexpected increase, the general business conditions index reached its highest level since hitting 20.2 in November 2024.
The unexpected advance by the headline index partly reflected significantly faster growth by new orders, as the new orders index surged to 13.4 in August from 2.0 in July.
The report said the shipments index also crept up to 12.2 in August from 11.5 in July, indicating modestly faster growth.
Meanwhile, the number of employees index fell to 4.4 in August from 9.2 in July, although a positive reading still suggests a slight increase in employment.
The prices paid index also dipped to 54.1 in August from 56.0 in July, while the prices received index decreased to 22.9 in August from 25.7 in July.
Looking ahead, the New York Fed said the index for future general business conditions slumped to 16.0 in August from 24.1 in July, indicating firms continue to expect conditions to improve in the months ahead but optimism has diminished compared to last month.
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