(Bloomberg) -- New York manufacturing improved in July, indicating factory activity in the state may be stabilizing after slumping the previous month to an almost three-year low.
The Empire State index, a survey of factories in New York State, climbed to 4.3 in July from a June reading of minus 8.6 that was the lowest since October 2016, according to the Federal Reserve Bank of New York. The median forecast of economists called for a reading of 2. In June, the gauge plunged 26.4 points, the most in records back to July 2001. Expectations for business conditions six months ahead also picked this month.
Even with pickup in the main index, details of the report show that the industry continues to struggle. A gauge of current orders crept up, though more of the state’s factories said bookings were lower in July than higher, and a measure of employment dropped to the weakest level since January 2016.
The Empire State survey is the first of several regional Fed manufacturing indexes to be released for the month. Others for areas including Philadelphia, Richmond and Dallas will be issued over the next few weeks as Fed policy makers weigh an interest-rate cut at their meeting at the end of the month.
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