New York factory activity rebounds in May; sign manufacturers are adjusting to stronger dollar

Economic Indicators Associated Press

Factory activity in New York increased slightly in May, as manufacturers are beginning to adapt to the challenges caused by a stronger dollar and restrained consumer spending.

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The Federal Reserve Bank of New York says that its Empire State manufacturing index rose to a plus 3.09 reading, up from a negative 1.19 reading in April.

The index's measure for new orders swung into positive territory, after declining the three previous months. But the gauge of hiring — while still positive — worsened in May.

The survey provides an early look at U.S. manufacturing each month. The New York Fed surveys 200 businesses in the state and typically receives responses from 100.