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

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.

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.

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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.