Philly Fed Index Surges to Highest Point in 4 Years

The manufacturing index of the Federal Reserve Bank of Philadelphia soared to a four-year high in June, the Fed reported Thursday, setting a mark of 22.2 compared with 9.1 in May.

June was the sixth straight month the index has been positive, and it now stands at its highest point since June 1998. A reading above zero indicates expansion.

Economists were expecting the index to rise only to 11, Bloomberg reported.

The manufacturing sector accounts for about 20% of U.S. economic production and is one of trucking’s most important customers.

The Fed said in its report the indicators for general activity and new orders improved significantly. And manufacturing executives in this region are optimistic business will continue to improve over in the second half of 2002.

However, the demand for labor in the region remains fairly weak, despite the improvement in manufacturing activity. The current employment index dipped to -2.0 in June from 5.1 in May, which was the first positive reading in 19 months. The average workweek index also receded slightly to -0.9 from 2.5.

This Fed's territory includes eastern Pennsylvania and the cities of Harrisburg, Scranton and Wilkes-Barre as well as Philadelphia; southern New Jersey including Trenton; plus Wilmington and Dover in Delaware.

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