Philadelphia Fed Manufacturing Index Rises in October

he Federal Reserve Bank of Philadelphia said Thursday its index of regional manufacturing rose to 28.5 in October from 13.4 the month before.

"Most indicators of current activity improved this month and continue to reflect growth in the region's manufacturing sector," the Fed said in a statement. "Although manufacturers are generally optimistic about growth in their sector, expectations for the next six months fell notably in October."

A number greater than zero signals a higher percentage of the manufacturers surveyed reported an improvement in business than deterioration. It has been postitive for 17 straight months.

The index measuring expectations for six months from now dropped to 27.6 in October, the lowest since February 2003. In addition, measures of activity including orders and employment also declined.

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