A report from ISM-NY Inc. said the city's purchasing managers index rose to 55.4 in July, a gain of 4.5 percentage points from June's 50.9 level.
The cities index for new factory orders rose 6.4 percentage points to 58.3. The production index rose by 11.6 percentage points to reach 65.
The index indicates growth with levels above 50.
The ISM said the index measuring the number of employees came in at 54.4, a gain of 5.7 percentage points.
The index measuring prices slipped by 3.5 percentage points to settle at 49.
Thirteen out of 18 manufacturing industries reported growth in July. Furniture production gained at the fastest clip, followed by textile mills, printing, wood products, non-metallic mineral products, electrical equipment, appliances, computers and food, beverages and tobacco products.