Empire State Manufacturing Survey Positive for First Time Since July

The Empire State Manufacturing Survey, the New York Federal Reserve’s gauge of manufacturing activity in the region, climbed out of contraction territory in March. The gauge rose 17 points to 0.62, up from -16.64 in February and out of contraction for the first time since July 2015.

The median economic forecast anticipated a much more moderate increase to -10 for the month. Readings above 0 on the Empire State Manufacturing Survey to expansion, while those below 0 point to contraction.

Further, the six-month outlook climbed 11 points to 25.5, with the index for future new orders rising 17 points to 38.9, its highest level in more than a year. The index for future shipments gained by 10 points to 33.3, while capital expenditures increased by 3 points to 15.8 and the technology spending index rose to 9.9.

However, labor market conditions were flat, as employment and the average workweek were largely unchanged. The employee index ticked down to -2.0, suggesting that employment levels remained sideways. The average workweek index climbed to 2.0, a clear sign that the average workweek was also flat.