Philadelphia Fed Index Rises to Highest Level in 10 Years

he Federal Reserve Bank of Philadelphia said Thursday its general economic index this month registered 38.8, the highest since December 1993, compared with 30.3 in December.

"In general, manufacturing executives' outlook for future growth continued to be optimistic," the Philadelphia Fed said in a statement. "Moreover, their outlook for capital spending over the next six months is showing signs of improvement."

In a separate report released Thursday, the Buffalo branch of the Federal Reserve Bank of New York said its factory index rose to a record 39.2 in January from 36.2 the month before.

For both reports, values greater than zero signal that a majority of manufacturers said business improved. The New York report also showed that half of the companies surveyed said business improved from December, while 11% saw deterioration.

The New York Fed's index of new orders rose to 36.1 in January from 35.2 in December. A gauge of factory shipments rose to 41.7 from 36.7 the previous month.

The Empire State survey began in July 2001, when the U.S. was in a recession. The index has been positive for nine consecutive months.

Meanwhile, the Philadelphia report shows that while indexes on new orders, shipments, employment and average workweek slipped in January, they all held above their six-month average and showed expansion.

The Philadelphia Fed's index measuring the outlook for six months from now slipped to 53.9 from 55.2 last month, while its index of inventories rose to minus 3.9 from minus 6.7.

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