An index covering manufacturing activity in New York area rebounded modestly from a multi-month low in July, but new orders sank to the negative territory for the first time since November 2011.

According to the Federal Reserve Bank of New York's July Empire State Manufacturing survey, the general business conditions index rose to 7.4 from 2.3, the lowest since last November, suggesting that conditions improved modestly over the month. About a third of respondents reported better conditions, while a quarter saw them worsen.

However, the new orders index fell below zero for the first time since November 2011, declining five points to -2.7 and indicating a slight decrease in orders.

Other sub-indexes were generally mixed. The shipments index rose five points to 10.3 while unfilled orders index fell eight points to -13.6. The delivery time index was slightly lower at -1. 2, while the inventories index rose out of negative territory to a level of zero, suggesting that inventory levels held steady over the month.

Indexes for the six-month outlook generally remained favorable, but optimism was still below levels seen earlier this year.

The future general business conditions index fell three points to 20.2, the sixth consecutive monthly decline, with 37 percent of respondents expecting improved conditions in the months ahead and 17 percent anticipating a worsening.

The New York Federal Reserve conducts the survey of manufacturers in New York State on monthly basis. A pool of roughly 175 manufacturing executives (usually the CEO or the president) is sent a questionnaire to report the change in an assortment of indicators from the previous month. Respondents also give their views about the likely direction of these same indicators six months ahead.