New York Fed Factory Index Soars on Surge of New Orders

Factory activity in New York unexpectedly surged in April, a survey from the Federal Reserve Bank of New York showed Monday.

The New York Fed’s “Empire State” index of business conditions jumped 35.4 points in April to 10.8, the first positive score for the index in five months. Readings above zero indicate improving conditions.

Economists had forecast a reading of negative 18, according to Econoday. That would have been a slight improvement over the minus 24.6 reading in March.

The index for new orders, a critical measure of demand, jumped 46.8 points to 25.1 in April. The shipments index rose 37.3 points to 23.9.

The index for selling prices continued to show prices rising at the same pace as last month. Input prices

The gauges for both employment and hours worked declined, the third consecutive month of contractions.

Looking forward, manufacturers continued to be downbeat, expecting little improvement over the next six months.