Growth in Philadelphia-area manufacturing activity has unexpectedly seen a considerable acceleration in the month of April, the Federal Reserve Bank of Philadelphia revealed in a report released on Thursday.
The Philly Fed said its diffusion index for current general activity jumped to 15.5 in April from 3.2 in March, with a positive reading indicating growth. Economists had expected the index to edge down to 1.5.
With the unexpected surge, the diffusion index for current general activity reached its highest level since hitting 16.9 in April 2022.
The unexpected spike by the headline index came as the new orders index advanced to 12.2 in April from 5.4 in March, while the shipments index shot up to 19.1 in April from 11.4 in March.
Meanwhile, the number of employees index edged down to a negative 10.7 in April from a negative 9.6 in March, suggesting a continued decrease in jobs.
The report also said the prices paid index soared to 23.0 in April from 3.7 in March, while the prices received index inched up to 5.5 in April from 4.6 in March.
Looking ahead, the Philly Fed said most future activity indicators declined but continue to suggest firms expect growth over the next six months, with the diffusion index for future general activity falling to 34.3 in April from 38.6 in March.
A separate report released by the Federal Reserve Bank of New York on Monday showed regional manufacturing activity has contracted at a slower rate in the month of April.
The New York Fed said its general business conditions index climbed to a negative 14.3 in April from a negative 20.9 in March, although a negative reading still indicates contraction. Economists had expected the index to jump to a negative 9.0.
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