April 15 (Bloomberg) -- Manufacturing in the New York region expanded in April at a faster pace than anticipated, indicating factories will remain at the forefront of the U.S. expansion. The Federal Reserve Bank of New York’s general economic index climbed to 31.9, a ninth consecutive month of growth, from 22.9 in March. Readings greater than zero signal gains in the so-called Empire State Index that covers New York, northern New Jersey and southern Connecticut.
Companies are boosting output to meet increased demand at home and abroad and to replenish inventories that were drawn down by a record amount last year. The recovery is broadening out beyond manufacturing, leading to gains in jobs and consumer spending.
“We’re seeing manufacturing actually lead the recovery over the past few months,” Kim Whelan, an economist at Wells Fargo Securities Inc. in Charlotte, North Carolina, said before the report. “With inventories at such low levels, manufacturers have started to respond to increased demand.”
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