New York factory index shows increase in activity for first time in five months

By Greg Robb

Headline general business conditions index shot up 35.4 points to 10.8

The numbers: The New York Fed's Empire State business conditions index, a gauge of manufacturing activity in the state, jumped 35.4 points in April to 10.8, the regional Fed bank said Monday.

Economists had expected a reading of negative 15, according to a survey by the Wall Street Journal.

Any reading above zero indicates improving conditions. This is the first reading in positive territory in five months.

Key details: The index for new orders soared 46.8 points to 25.1 in April and the shipments index jumped 37.3 points to 23.9.

Unfilled orders rose 6.7 points to a flat reading.

Despite the strength, both employment and hours worked declined for the third straight month. Selling prices increased at the same pace as last month.

Firms continue to expect little improvement in conditions over the next six months.

Big picture: This is the first of the regional Fed reports. Manufacturing is showing some life after sharp weakness earlier in the year. Some of the strength could be from China's reopening. Some economists are worried that the sector is going to be hurt by a tightening of credit conditions triggered by the failure of Silicon Valley Bank.

Market reaction: Stocks were set to open higher on Monday. The yield on the 10-year Treasury note rose to 3.55%.

-Greg Robb

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04-17-23 0834ET

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