Conditions for New York manufacturers improved modestly in the month of June, according to a report released by the Federal Reserve Bank of New York on Monday, with the index of activity in the sector climbing into positive territory.
The New York Fed said its general business conditions index rose to a positive 7.8 in June from a negative 1.4 in May, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to climb to a positive 0.5.
While the headline index rose by much more than expected, the New York Fed noted that most other indicators in the survey fell for the month.
The new orders index fell to a negative 6.7 in June from a negative 1.2 in May, while the shipments index tumbled to a negative 11.8 from zero. The unfilled orders index also slid eight points to a negative 14.5.
The report also showed a decrease by the number of employees index, which dropped to zero in June from a positive 5.7 in May.
Lou Brien, economic strategist at DRW Trading, said, "One could wonder if the headline increase was a math error, if not for the fact that the headline is said to be more of a sentiment index, derived separately from the underlying details."
On the inflation front, the prices paid index edged up to 21.0 in June from 20.5 in May, while the prices received index climbed to 11.3 from 4.6.
The New York Fed also said its future general business conditions index edged down to 25.0 in June from 25.5 in May. The drop suggests that optimism about future conditions continued to wane.
Thursday morning, the Philadelphia Federal Reserve is scheduled to release its report on regional manufacturing activity in the month of June.
Economists expect the Philly Fed Index to climb to a negative 1.0 in June from a negative 5.2 in May, with a negative reading indicating a continued contraction in regional manufacturing activity.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.