The Empire State manufacturing index rose to 20.2 in March, the New York Federal Reserve Bank said Thursday, marking the fourth straight increase after the index sunk below zero from June through October.

The March gain surprised analysts. Economists polled by MarketWatch expected the index to slip to 17.7 in March.

Underlying conditions were mixed. The new orders and shipment indices retreated, while the two readings on employment were stronger.

The index for prices paid surged by 25 points to 50.6, its highest level since last June.

A reading of expected conditions in six months retreated slightly for the second straight month.

To read more, go to MarketWatch