August 17, 2009

Fed says confidence is up in New York

The New York Federal Reserve said manufacturing conditions reflected in a monthly survey turned positive in August for the first time in more than a year.

The composite index in the survey of 175 New York businesses reached its highest level since November 2007, the month before the recession officially began, the Fed said.

After months in negative territory, the index reached 12.1, the Fed said.

The new orders index rose 8 percentage points to 13.4. The shipments index rose 3 points to 14.1. The employment index remained in negative territory, but still rose 13 points to minus 7.5, its highest level since October 2008 and the sixth consecutive month of improvements, the Fed said.

The futures indexes also rose, indicating business managers feel conditions will continue to improve. Sixty-two percent of respondents indicated business conditions would improve in the next six months.