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New York manufacturing activity remained robust in the month of August, according to a report released by the Federal Reserve Bank of New York on Wednesday.

The New York Fed said its general business conditions index climbed to 25.6 in August from 22.6 in July, with a positive reading indicating growth in the manufacturing sector. Economists had expected the index to dip to 20.0.

The unexpected increase by the headline index was partly due to an acceleration in the rate of shipment growth, as the shipments index jumped to 25.7 in August from 14.6 in July.

On the other hand, the report said the new orders index edged down to 17.1 in August from 18.2 in July, indicating a modest slowdown in the pace of new orders growth.

The number of employees index also fell to 13.1 in August from 17.2 in July, although the New York Fed said labor market indicators still point to solid gains in employment.

While the report also said the prices received index dipped to 20.0 in August from 22.2 in July, the prices received index rose to 45.2 from 42.7.

Looking ahead, the New York Fed said firms remain moderately optimistic about the six-month outlook, though less so than earlier this year. The index for future business conditions climbed to 34.8 in August from 31.1 in July.

The Federal Reserve Bank of Philadelphia is scheduled to release its report on regional manufacturing activity in the month of August on Thursday.

The Philly Fed Index is expected to drop to 22.0 in August from 25.7 in July, although a positive reading would still indicate growth.