New York Manufacturing Activity Rebounds

Washington, DC, February 15, 2007--Manufacturing activity in the New York area in February rebounded after two straight soft months, the New York Federal Reserve Bank said Thursday.

The bank's Empire State general business conditions index rose to 24.4 in February from 9.1 in January. The index has slipped in December and January after peaking at 25 in November.

The increase was unexpected. Economists were forecasting the index to slip to 8.7.

In February, new orders and shipments increased and unfilled orders moved out of negative territory.

The prices paid index moderated. The employment indexes increased.

In February, 41% of the businesses surveyed reported that conditions had improved, while 17% said conditions had deteriorated.

The new orders index rose to 18.9 from 10.3 in January.

Shipments rose to 27.1 in February from 16.1 in the previous month.

The inventory index improved to -7.5 from -19.2 in the previous month.

The employment index rose to 12.7 in February from 6.9 in the previous month. The workweek index rose to 5.4 from -1.1.

The prices paid index fell to 26.9 from 35.1in January. The prices received index fell to 12.9 from 19.2.