NEW YORK, Feb 17 - Factories in New York state saw business conditions improve for the tenth month in a row in early February, in line with a pick-up in the manufacturing sector across the United States, a survey said on Tuesday. The Federal Reserve Bank of New York said the business conditions component of its two-year-old Empire Manufacturing Survey rose to a record high of 42.05 from a revised 38.85 in January.
The Fed said respondents in the New York area reported improved conditions and continued optimism, with nearly all those surveyed expecting conditions to be the same or better in six months' time. The new orders index edged up to 34.94 in February from a revised 34.82 in January, while shipments fell to 26.61 from 41.39.
The number of employees index fell almost eight points from last month, but remained solidly positive at 16.5, the Fed said. Some 28 percent of respondents reported higher employment levels in February, while only 11 percent reported a decline. The average workweek index reached its highest level on record. The manufacturing sector was one of the hardest hit by the 3-year downturn in the United States, but robust economic growth has seen factory activity reach its best level in two decades in recent months, according to the Institute for Supply Management's nationwide survey. The Empire State prices paid index rose to a new high of 33.62 from 27.88, while the prices received component remained subdued at 3.45.//