New York state manufacturing activity expanded in April at the quickest rate seen in five months, according to a survey released by the Federal Reserve Bank of New York. The general business conditions index climbed by 11.2 points to reach 11, a level that signals expansion.
Respondents reported marked improvements in both orders and shipments, with the survey recording the strongest growth in those categories since 2023. Despite the pickup in current activity, sentiment on the near-term trajectory cooled: the gauge tracking expected business conditions over the coming six months fell to a five-month low.
Cost pressures rose sharply. A measure of expected input prices surged 18.5 points to 61.6, representing the largest increase since 2011, as respondents cited the conflict in the Middle East as a factor that pushed up the price of oil and other industrial materials. An index measuring the outlook for prices received by firms also climbed, but did so more modestly than the input-cost measure.
Labor-related indicators showed notable strength. The Fed bank's measure of current factory employment rose to its highest level since the end of 2022, and hours worked expanded at the most rapid pace recorded since 2021. At the same time, firms signaled less optimistic plans for future employment and capital expenditures, indicating a pullback in expectations for hiring and investment.
The survey responses underpinning the results were collected between April 2 and April 9. The data show a manufacturing sector experiencing stronger activity today, while expressing caution about the outlook and confronting elevated input-cost pressures.
Data snapshot
- General business conditions index: up 11.2 points to 11 (expansion).
- Expected input prices: up 18.5 points to 61.6 - largest increase since 2011.
- Employment and hours worked: current employment at highest since end-2022; hours worked expanded at the fastest pace since 2021.
- Survey period: April 2 to April 9.