Philadelphia Factory Index Hits Highest Level Since 2005

Manufacturing levels in the Philadelphia expanded at the fastest pace in more than four and a half years, the Federal Reserve Bank of Philadelphia said Thursday.

The area’s factory index rose to a 20.4 reading, from 16.7 in November, the regional Fed said.

Readings greater than zero signal growth and this month’s level was the highest since April 2005.

The reading was higher than economists’ forecasts of a projected decline to 16, Bloomberg reported.

The Philadelphia Fed surveys about 100 manufacturers for the index in eastern Pennsylvania, Delaware, and southern New Jersey.