NY manufacturing index makes record in January

A index that follows manufacturing in the New York metropolitan area grew in January, reflecting improving orders, sales and employment. Bloomberg News reported it was the fastest pace of growth in nine months.

The general economic index posted by the Federal Reserve Bank of New York's hit 13.5, the highest level since April, from a revised 8.2 in December.

The Empire State Manufacturing Survey for January was expected to show a soft but noticeable improvement in the factory sector.

That gauge exceeded the median forecast of 56 economists surveyed by Bloomberg News, which projected an increase to 11. Readings higher than zero signal expansion among companies. The measure follows manufacturing in New York, northern New Jersey and southern Connecticut.

"It's a reflection of improvement in demand," Millan Mulraine, a senior U.S. strategist at TD Securities in Manhattan, told Bloomberg News. "The pace of recovery has accelerated. We're beginning to see signs that the economy is starting to build on the strong momentum that we saw at the end of last year."