NY manufacturing index highest since May

A gauge of manufacturing in New York State rose in November, ending five straight months of contraction, while the outlook for coming months strengthened, the New York Federal Reserve said in a report Tuesday.

The New York Fed's "Empire State" general business conditions index rose to 0.61, marking the first time the index has been in positive territory since May and up from minus 8.48 the month before. Economists polled by Reuters had expected a reading of minus 2.1.

Employment gauges were mixed. But the index of business conditions six months ahead jumped to plus 39.02 in November, the highest since May, from plus 6.74 in October.

"This suggests that there is some underlying stabilization in manufacturing, although there is not much upward momentum. The deterioration that we saw in the summer does not seem to be continuing," said Sean Incremona, economist at 4Cast Ltd. in Manhattan.

The survey of manufacturing plants in the state is one of the earliest monthly guideposts to U.S. factory conditions.

The index also offered some hints of good news on the inflation front, with the prices-paid index receding to the lowest level since November 2009.

The latest economic data have helped ease concerns the economy is sliding back into a recession after growth in the first half of the year almost stalled.

-- Combined wire services