A contraction in U.S. manufacturing spurred by the trade battle with China and slowing global growth may have reached an end already, if two key business surveys hold up.

Production at American facilities fell in the second half of 2019 despite an otherwise growing economy, sparking worries that a broader recession might be in the works.

But indicators this week from the key Philadelphia and New York Federal Reserve districts showed a sharp rebound that far exceeded Wall Street expectations.

Early in the week, New York's Empire State Manufacturing Survey for general business conditions posted a reading of 12.9, up 8 points from January and its best level since May. New orders surged to 22.1, the highest since September 2017, and shipments rose to 18.9, the best since November 2018.

On Thursday, the Philadelphia survey exploded 20 points higher to 36.7, the highest since February 2017. New orders hit their highest since May 2018.