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(16 Jul 2025, 08:41)

Economic Buzz: US New York manufacturing index indicates growth in July


New York manufacturing activity has seen a notable turnaround in the month of July, according to a report released by the Federal Reserve Bank of New York on Tuesday.

The New York Fed said its general business conditions index surged to a positive 5.5 in July from a negative 16.0 in June, with a positive reading indicating growth.

With the much bigger than expected increase, the general business conditions index returned to positive territory for the first time since February.

The spike by the headline index partly reflected turnarounds by new orders and shipments, as the new orders jumped to a positive 2.0 in July from a negative 14.2 in June and the shipments index shot up to a positive 11.5 in July from a negative 7.2 in June.

The report also said the number of employees index climbed to 9.2 in July from 4.7 in June, indicating faster job growth.

On the inflation front, the prices paid index surged to 56.0 in July from 46.8 in June, but the prices received index edged down to 25.7 in July from 26.6 in June.

The New York Fed also said the index for future general business conditions rose to 24.1 in July from 21.2 in June, suggesting that, on the whole, businesses expect activity to increase in the months ahead.

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