The New York Federal Reserve released its survey on Tuesday. The NY Fed Empire State manufacturing index jumped to 0.62 in March from -16.64 in February, exceeding expectations for an increase to -10.00.
A reading above zero indicates expansion, while a reading below zero indicates contraction.
"The March 2016 Empire State Manufacturing Survey indicates that business activity steadied for New York manufacturers," the New York Federal Reserve said in its report.
The new orders index increased to 9.57 in March from -11.63 in February, while the shipments index climbed to 13.88 from -11.56.
The general business conditions expectations index for the next six months jumped to 25.52 in March from 14.48 in February.
The price-paid index remained unchanged at 2.97 in March.
The index for the number of employees fell to -1.98 in March from -0.99 in February.