Washington, DC, March 15, 2006--Manufacturing activity in the New York area surged in March, according to the New York Federal Reserve Bank.
The bank's Empire State Manufacturing index jumped to 31.2 points in March from a revised 21.0 in February.
This is the highest level since July 2004.
The increase in the main index was unexpected. Economists had forecast the Empire State index would slip to 18.5 in March.
Readings over zero indicate expansion.
New orders rose to 29.2 points in March from 27.1 in February.
The indexes for shipments and unfilled orders hit their highest level in over a year.
Inflation indexes weakened in March. The prices-paid index fell to 40.2 points in March from 53.3 in February.
The factory job market improved significantly, with the employee index rising to 21.8 points in March from 6.0 in February. The average workweek index rose sharply, hitting 25.3 points from 5.5 points in the previous month.
The index of activity in the next six months showed optimism. The future general business condition index rose to 39.0 in March from 38.4 in February.
