The report from the New York Federal Reserve showed on Friday that manufacturing activity in the New York region expanded marginally in early January.

According to the survey, NY Fed Empire State manufacturing index fell from 4.9 in December to 3.5 in January, pointing to a very little growth in activity. This was the lowest reading since June.

Economists had expected the index to come in at 6.0.

Anything below zero signals contraction.

According to the report, the new orders index rose 3.2 points to 6.6, indicating a slight advance in orders, and the shipments index fell 4.8 points to 7.3, pointing to a modest rise in shipments. The employment index decreased 3.0 points to 11.2, pointing to ongoing gains in employment. Delivery times were somewhat longer (5.5 in January, up from 4.3 in December), and inventories held steady (-0.7, up from -4.3 in December). On the price front, the prices paid index jumped 8.4 points to 45.5, its highest level in two years, indicating a pickup in input price gains, while the prices received index increased 5.2 points to 15.2, its highest level in a year, pointing to an acceleration in selling prices.