Factory growth fastest in 3 years in Philly region

AP Economics WriterJuly 17, 2014 

Philadelphia Fed

FILE - In this March 12, 2013 file photo, toolmakers work at The Rodon Group manufacturing facility in Hatfield, Pa. The Federal Reserve Bank of Philadelphia reports on manufacturing in the Philadelphia region on Thursday, July 17, 2014.

MATT ROURKE, FILE — AP Photo

— Manufacturing in the Philadelphia region surged in July, expanding at its fastest pace in more than three years, as new orders, shipments, and hiring all rose.

The Federal Reserve Bank of Philadelphia said Thursday that its index of regional factory activity rose to 23.9 in July from 17.8 in June. Any reading above zero indicates growth. July's figure is the highest since March 2011. It also is much higher than last year's average of 6.4, according to Jim O'Sullivan, an economist at High Frequency Economics.

The data comes after a separate Fed report Wednesday suggested manufacturing output nationwide increased at a healthy pace in the April-June quarter. That's fueling the economy's return to growth after a dismal first quarter.

The Philly Fed report, and a similar report from the New York Fed Tuesday, suggests that U.S. manufacturing output continued to grow in July and will also boost growth in the third quarter.

Manufacturing in the New York region expanded in July at the fastest pace in more than four years, the New York Fed said.

In the Philly Fed report, measures of new orders and shipments jumped to the highest levels in 10 years, according to Dean Maki, an economist at Barclays Capital.

"The numbers are volatile but this is a startling gain," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

The Philadelphia Fed's survey covers manufacturing in Pennsylvania, New Jersey and Delaware.

The News Tribune is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service