US manufacturing index posts first growth in a year

The general business conditions index for New York manufacturers increased 13 points to 12.1, its highest level since November of 2007 and the first rise in a year, the Federal Reserve Bank of New York said on Monday, citing the Empire State Manufacturing Survey.

New orders and shipments rose to their highest levels in many months, in a fresh sign the economy may be emerging from recession, the survey showed.

The Empire State Manufacturing Survey's general business conditions index increased 13 points, to 12.1, its best reading since November 2007, the month before the world's largest economy officially entered recession.

"For the first time in considerably more than a year, the Empire State Manufacturing Survey indicates that conditions for New York manufacturers have improved," the New York Fed said in a statement.

The survey assessed the degree to which certain business issues posed problems for manufacturers as also the cost of employee benefits. Manufacturers were also asked to give their views on workers' compensation, as also the cost of resources.

In August, after more than a year of negative readings, the general business conditions index rose into positive territory and reached its highest level since November 2007- a clear indication that, on balance, business conditions had improved for New York State manufacturers, the survey showed.