May 17, 2004 6:30 AM, EDT

Factory Activity in New York Expands in May

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anufacturing in New York state expanded in May for a 13th consecutive month, but at a slightly slower pace than the month before, a Federal Reserve survey released Monday showed.

The Buffalo branch of the Federal Reserve Bank of New York said the factory index was 30.2 in May, down from 34 in April and a record high 42.05 in February. However, the gauge has exceeded zero, the dividing point between expansion and contraction, since May 2003.

The manufacturing sector is one of trucking's largest and most important customers.

Economists had predicted a decrease in the index to 34 from a previously reported 36.1, Bloomberg reported.

The New York Fed's gauge of the number of employees rose this month to 21.3 from 18.5 in April. The survey's hiring index for the next six months rose to 32.7 from 28.5 the previous month.

The index of new orders rose to 36.6 this month from 30.6 in April, while a gauge of factory shipments rose to a record 42.3 from 39.5.

A gauge of expected business conditions over the next six months rose to 50.4 this month from 48.8 in April, the report said.

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