New York Fed factory index rises

Manufacturing in New York state unexpectedly expanded this month at the fastest rate in a year as orders climbed and employment rose.

The Federal Reserve Bank of New York’s general economic index advanced to 26.5, the highest since June 2006, from 25.8 the previous month, the bank said. Readings greater than zero signal expansion.

The figures provide further evidence of a pickup in manufacturing and business spending that is helping the economy overcome a slowdown in consumer spending. A national survey this month showed manufacturing expanded in June at the fastest pace in more than a year.

“It’s all looking pretty positive for manufacturing right now,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York. “We’re getting support from exports, and capital expenditure is increasing. Manufacturing should contribute to growth in the second half.”