The New York Federal Reserve said its Empire State Manufacturing Index climbed to +11.9 in August, far exceeding the consensus forecast of 0.0 and up from +5.5 in July. A reading above zero signals growth in factory activity in New York State; the latest figure is the highest since November 2024 and only the second time it has topped 10 since April 2022. The report showed broad-based improvement across key components. The new-orders gauge rose to +15.4 from +2.0, and the shipments index advanced to +12.2 from +11.5, pointing to stronger demand and output. Price pressures eased modestly, with the prices-paid measure slipping to 54.1 from 56.0. Employment conditions softened, as the hiring index fell to 4.4 from 9.2, suggesting firms are adding workers at a slower pace. Manufacturers were cautiously optimistic about the near-term outlook, according to the survey’s forward-looking indicators, although they continued to cite elevated costs and uncertainty over economic policy. The stronger-than-expected headline reading may temper expectations of a near-term slowdown in U.S. factory activity and will feed into deliberations over Federal Reserve policy in the second half of the year.