Philadelphia Manufacturing Index Gains in May

he pace of manufacturing growth in the Philadelphia area rose in May, even as costs rose, the Federal Reserve Bank of Philadelphia said Thursday.

The Philadelphia economic index rose to 14.4 from 13.2 last month. Analysts had forecast a drop to 12.5, Bloomberg reported.

Index readings greater than zero mean that a higher percentage of manufacturers surveyed reported an improvement in business conditions; below zero means they reported deterioration.

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