Philadelphia-area manufacturing activity unexpectedly grew at a faster rate in the month of October, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday.
The Philly Fed said its index for current manufacturing activity in the region climbed to 27.9 in October from 23.8 in September, with a positive reading indicating growth.
The increase by the Philly Fed index came as a surprise to economists, who had expected the index to drop to 22.0.
The unexpected increase by the headline index was partly due to a sharp jump by the number of employees index, which surged up to 30.6 in October from 6.6 in September.
On the other hand, the new orders index slumped to 19.6 in October from 29.5 in September and the shipments index tumbled to 24.4 from 37.8.
The report showed a mixed picture on the inflation front, as the prices paid index rose to 38.1 in October from 34.4 in September but the prices received index fell to 14.2 from 22.8.
Looking ahead, the Philly Fed said the indexes assessing the six-month outlook suggest that firms remained optimistic about future growth.
The diffusion index for future general activity still pulled back to 46.4 in October from a six-month high of 55.2 in September.
On Monday, the New York Fed released a separate report that also showed an unexpected acceleration in the pace of growth in regional manufacturing activity.
The New York Fed said its general business conditions index climbed to 30.2 in October from 24.4 in September. Economists had expected the index to drop to 20.7.
by RTT Staff Writer
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