A GAUGE of manufacturing in New York State rose slightly in August after plunging the previous month as employment rebounded, the New York Federal Reserve said in a report yesterday.

The New York Fed's "Empire State" general business conditions index rose to 7.10 in August from 5.08 in July.

The August reading was a surprise. Economists polled by Reuters had hoped for 8.00 for August.

Employment gauges improved. The index for the number of employees rose to 14.29 in August from 7.94 in July. The average employee workweek index jumped to 7.14 from -9.52.

The new orders index, however, fell below zero for the first time since June 2009.

The survey of plants in the state is one of the earliest monthly signs to factory conditions in the United States.