Business conditions in the manufacturing sector in the key US State of New York improved significantly during June, offering hope to the nation's beleaguered factories. The Federal Reserve Bank of New York said its Empire State Manufacturing Survey soared to 26.8, the highest level in its brief two-year history, from 10.6 in May. Analysts had forecast that the index would fall to 9.6. Investors look to the survey for a snapshot of factory activity during the month. Its sharp gains could prompt economists to boost forecasts for the sector as a whole in the US.
Several of the survey's components showed solid improvement. New orders and shipments rose to 16.1 and 15.3 respectively, which may point to an increase in output elsewhere. Meanwhile, 43pc of firms surveyed said business was better in June than in May with an additional 41pc saying business was the same. Shipments rose to 15.3 from 13.2. Unfilled orders rose to 2.6 from -3.4, the first time it has been in positive territory in a year. //www.fxcentre.com