Conditions for New York manufacturers improved for the sixth consecutive month in January, according to a report released by the Federal Reserve Bank of New York on Friday, with the index of activity in the manufacturing sector increasing by more than expected.
The New York Fed said its general business conditions index climbed to 15.9 in January from an upwardly revised 4.5 in December, with a positive reading indicating growth in the sector. Economists had expected the index to rise to 12.0 from the 2.6 originally reported for the previous month.
With the increase, the index regained some ground after showing a notable decline in the previous month, although it remains well off the more than three-year high of 33.4 set in October.
The new orders and shipments indexes showed similar increases, with the new orders index jumping to 20.5 in January from 2.8 in December, while the shipments index rose to 21.1 from 8.4.
Additionally, the report showed that the unfilled orders index rose back above zero, rising to 2.7 in January from a negative 21.1 in the previous month.
The New York Fed also noted that the number of employees index rose to 4.0 in January from a negative 5.3 in December, indicating an increase in employment.
On the inflation front, both the prices paid index and the prices received index rose significantly, with the prices received index turning positive for the first time in more than a year.
The prices paid index jumped to 32.0 in January from 19.7 in December, while the prices received index rose to 2.7 from a negative 9.2 in the previous month.
Looking ahead, the New York Fed said that the future indexes indicated that conditions were widely expected to improve further in the months ahead.
The future general business conditions index rose to 56.0 in January from 52.6 in December, with 63 percent of respondents expecting conditions to improve over the next six months.
Commenting on the report, Peter Boockvar, equity strategist for Miller Tabak, said, "Net-net, this data confirms that manufacturing will continue to contribute to GDP growth for now but we need to see other surveys to determine the degree."
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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.