The report from the New York Federal Reserve showed on Tuesday that manufacturing activity in the New York region grew in February at a faster pace than in recent months.

According to the survey, NY Fed Empire State manufacturing index came in at 12.9 this month compared to an unrevised 4.8 in January, pointing to a pick-up in business activity in New York State. That was the highest reading since May 2019.

Economists had expected the index to come in at 5.0

Anything below zero signals contraction.

According to the report, the new orders index climbed 15.5 points to 22.1 (highest level in well over a year), indicating that orders rose significantly, while the shipments index surged 10.3 points to 18.9, pointing to an increase in shipments at a faster pace than in January. Meanwhile, the index for the number of employees fell 2.4 points to 6.6, indicating that employment grew to a small degree.

Elsewhere, delivery times lengthened (+11 points to 8.3 in February), and inventories jumped (+13.6 points to 12.9). On the price front, input price increases slowed somewhat (-6.5 points to 25.0), and selling price increases accelerated slightly (+2.3 points to16.7).