The report from the New York Federal Reserve showed on Tuesday that manufacturing activity in the New York region expanded modestly in early February.

According to the survey, NY Fed Empire State manufacturing index rose from 3.5 in January to 12.1 in February, pointing to the fastest growth in activity since July 2020.

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 4.2 points to 10.8, indicating that orders advanced, and the shipments index fell 3.3 points to 4.0, pointing to a small gain in shipments. The employment index went up 0.9 points to 12.1, indicating ongoing modest rise in employment. Delivery times lengthened (9.1 in February, up from 5.5 in January), and inventories increased (6.5, up from -0.7 in January). On the price front, the prices paid index jumped 12.3 points to 57.8, a level last reached in 2011, pointing to sharp input price increases, while the prices received index increased 8.2 points to 23.4, its highest level in two years, pointing to a pickup in selling price gains.