The Federal Reserve Bank of New York released a report on Thursday showing a substantial acceleration in the pace of growth in New York manufacturing activity in the month of July.

The New York Fed said its general business conditions index soared to 43.0 in July from 17.4 in June, with a positive reading indicating growth in regional manufacturing activity. Economists had expected the index to inch up to 18.0.

With the much bigger than expected increase, the New York Fed’s general business conditions index reached a new record high.

The spike by the headline index came as the new orders index jumped to 33.2 in July from 16.3 in June, while the shipments index shot up to 43.8 from 14.2.

The employment index also advanced to 20.6 in July from 12.3 in June, indicating strong job growth during the month.

While the report showed the prices received index also climbed to 39.4 in July from 33.3 in June, the prices paid index fell to 76.8 from 79.8. Both price indexes were still at or near record highs

Looking ahead, the New York Fed said firms remained optimistic that conditions would improve over the next six months, although the index for future business conditions slid to 39.5 in July from 47.7 in June.

A separate report released by the Federal Reserve Bank of Philadelphia on Thursday showed a slowdown in the pace of growth in Philadelphia-area manufacturing activity in the month of July.

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