Its general business conditions index extended a run of consecutive gains to 11 months in June, says The New York Federal Reserve.

The New York bank also said that the headline index based on a survey taken the first two weeks of each month edged higher than May with a reading of 19.6. Numbers above zero indicate growth.

The new orders index rose modestly to 17.5 from 14.3 in May. Meanwhile, the prices paid index fell sharply from 44.7 to 27.2.

According to the Fed, the inventories index remained flat for the month, an indication that inventories have stabilized.

The report further said that the number of employee index dropped 10 points to 12.4, but the average number of hours worked index climbed.

It was also noted by the report that respondents indicated they were positive about the future, although levels of optimism dropped for the second consecutive month with the future outlook index falling one point to 40.7. (With Inputs from Agencies)